You are a production planner for stanley tools stanley, Operation Management

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You are a production planner for stanley tools stanley

You are a production planner for Stanley Tools. Stanley Tools faces an annual demand of 1,000 screws. Production rate is 8 screws per day. Production setup cost is $10 per setup and annual holding cost is $2 per screw. Stanley Tools operates 250 days in a year. (a) What is the optimum production run quantity? (b) What is the maximum inventory level?

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Operation Management: You are a production planner for stanley tools stanley

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