What would the annual savings be if the product were


A product is produced in batches. Batch size = 2000 units. Annual demand = 50,000 units, and unit cost of the product = $4.00. Setup time to run a batch = 2.5 hr, cost of downtime on the affected equipment is figured at $250/hr, and annual holding cost rate = 30%. What would the annual savings be if the product were produced in the economic order quantity?

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Mechanical Engineering: What would the annual savings be if the product were
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