The cost of holding a bearing in stock for a year is Rs. 2 and the set-up cost of a production run is Rs. 180. How frequently should production run be made?

A contractor has to supply 10,000 bearings per day to an automobile manufacturer. When he started production runs, he can produce 25,000 bearings per day. The cost of holding a bearing in stock for a year is Rs. 2 and the set-up cost of a production run is Rs. 180. How frequently should production run be made?



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