Asked by fadly
Adam Ziqry is the production manager of ABC Enterprise, a small producer of metal parts. ABC Enterprise supplies XYZ Sdn Bhd, a larger assembly Company, with 10,000 wheel bearings each year. This order has been stable for some time. Set up cost for ABC Enterprise is $40, and holding cost is $60 per wheel bearing per year. ABC Enterprise can produce 500 wheel bearing per day. XYZ Sdn Bhd is a just-in-time manufacturer and requires that bearings be shipped to it each business day.
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