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Holstein Computing manufactures an inexpensive audio card (Audio Max)for assembly into several models of its microcomputers.The annual demand for this part is 100,000 units.The annual inventory carrying cost is $5 per unit and the cost of preparing an order and making production setup for the order is $750.The company operates 250 days per year.The machine used to manufacture this part has a production rate of 2000 units per day.
(a)Calculate the optimum lot size.
(b)How many lots are produced in a year?
(c)What is the average inventory for Audio Max?
(d)What is the annual holding and setup cost for Audio Max?
Osteoclasts
Cells that break down bone tissue, helping to remodel and repair bones.
bone
A dense, hard connective tissue composing the skeleton of most vertebrates, providing structure and protecting organs.
Osteoblast
A type of cell responsible for bone formation.
Bone
A rigid organ that constitutes part of the vertebrate skeleton, providing structural support, protecting various organs, and harboring bone marrow.
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