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Unformatted text preview: setup cost to produce Super Green is $300. Annual holding cost is estimated to be $3 per 50-pound bag. Currently, SG is producing in batches of 2500 bags. a) Calculate the total annual costs of the current operating policy at GGC (hint: current Q=2500 bags) b) Calculate the EPQ, total costs of the EPQ policy, describe the policy c) Calculate the penalty cost incurred with the present policy...
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- Spring '08