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What is the annual demand of engines

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Question - The unit cost of an engine is $3000 and there is a 30% interest rate associated with the holding cost. It takes 6 weeks for a replenishment order to be placed. Every time the facility has to setup to make these engines the manager estimates a setup cost of around $250,000. The cost of back orders is about $150,000 per year.

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What is the annual demand of engines?

Reference no: EM132020707

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