(Solution) - Annual demand for a made to stock product is 60 000 units Each -(2025 Original AI-Free Solution)
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Annual demand for a made to stock product is 60,000 units. Each unit costs $8.00 and the annual holding cost rate is 24%. Setup time to change over equipment for this product is 6 hr, and the downtime cost of the equipment is $120/hr. Determine
(a) Economic order quantity and
(b) Total inventory costs.