As part of lean initiative a manufacturer has reduced the, Operation Management

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As part of lean initiative a manufacturer has reduced the

As part of lean initiative, a manufacturer has reduced the setup cost for machining a component from $200 to $12.5. As a result, the new economic lot size is 10 units. The former economic lot size had been much larger. What was it? If the goal is to reduce the economic lot size to one unit, what must the set up cost be reduced to?

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