1.

A bearing manufacturing company supplies 10,000 bearings per day to an automobile company. The company finds it can produce 25,000 per day when the production run starts. Holding the stock for a year at Rs. 2 per unit setup cost of a production run is Rs. 1,800. The economic lot size for each production run is:

A. 265430
B. 104642
C. 124631
D. 350765
Answer» C. 124631


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