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Chapter 16, Problem 2P

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••• 16.9 Given the following information about a product at Michael gibson’s firm, what is the appropriate setup time?

Annual demand = 39,000 units

Daily demand = 150 units

Daily production = 1,000 units

Desired lot size = 150 units

Holding cost per unit per year    = $10

Setup labor cost per hour = $40

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