A company can produce a part it uses in an assembly


A company can produce a part it uses in an assembly operation at the rate of $50 an hour. The company operates 8 hours a day, 300 days a year. Daily usage of the part is 300 parts. The company uses the part every day. The run size is 6000 parts. The annual holding cost is $2 per unit, and setup cost is $100. How many runs per year will be there?

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Operation Management: A company can produce a part it uses in an assembly
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