What should be the optimal production run size of toy bears

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DeeDee Toys has an annual demand of 192,000 Pooh bears. The company manufactures its bears at a rate of 3200 per day. Carrying cost is $4 per bear per year. Setup cost for a production run of bears is $180. The company operates 240 days per year. What should be the optimal production run size of toy bears?

Reference no: EM13719839

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