The firm operates 250 days per year what is the annual


A toy manufacturer uses 125,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 800 per day. Holding cost is $2 per wheel per year Setup cost for a production run of wheels is $75. The firm operates 250 days per year. What is the annual holding cost if the total cost-minimizing lot size is used?

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Operation Management: The firm operates 250 days per year what is the annual
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