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