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Iq ltd. Produces its premium plant food in 50 lb. Bags. Demand is 100,000 lbs. Per week and they operate 50 weeks each year. Iq can produce 250,000 lbs. Per week. The setup cost is $200 and the annual holding cost rate is $0. 55 per bag. Hp produces its premium plant food in batches of 1,000,000 lbs. Determine the maximum inventory level, and calculate the total cost of using this policy
Sagot :
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