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You have read that in JIT and lean production the optimum lot size is one, with some exceptions for packaging and physical limitations. If a product currently has a lot size of 25, what must happen to setup time for the lot size to truly fall to one?
Data for this problem are D=100 units, S=$75 based on setup time of 50 minutes at $1.50 per minute, and H=$40 per unit per year.
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