Production costs are 500 to prepare for a production run, Operation Management

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Production costs are 500 to prepare for a production run

Inventory cost model a company needs 450,000 items per year.

Production costs are $500 to prepare for a production run and $10 for each item produced. Inventory costs are $2 per item per year.

Find the number of items that should be produced in each run so that the total costs of production and storage are minimized.

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Operation Management: Production costs are 500 to prepare for a production run

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Operation Management: Production costs are 500 to prepare for a production run

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