Given that annual demand for a product is 20000 units cost


Given that annual demand for a product is 20,000 units, cost per unit = $6.00, holding cost rate = 2.5%/month, changeover (setup) time between products averages 2.0 hr, and downtime cost during changeover = $200/hr, determine

(a) economic order quantity and

(b) total inventory costs for this situation.

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Mechanical Engineering: Given that annual demand for a product is 20000 units cost
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