A toy manufacturer makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is contin
uous, the motors are intermittent flow. Data on the manufacture of the motors appears below.Annual demand (D) = 50,000 units Daily subassembly production rate = 1,000Setup cost (S) = $85 per batch Daily subassembly usage rate = 200Carrying cost = $.20 per unit per yearTo minimize cost, how large should each batch of subassemblies be?
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