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Andre Greipel is the owner of a small company that producesheart rate monitors. The annual demand is for 2,250 heart ratemonitors, and Andre produces these devices in batches. On average,Andre can produce 140 monitors per day during the productionprocess. Demand for monitors has been about 35 monitors per day.The cost to set up the production process is $350, and it costsAndre $0.80 to carry 1 monitor in inventory for one year. How manymonitors should Andre produce in each batch?
a) What is the optimal economic production quantity?
b) On average, how many setups are required per year (onedecimal place)?
c) What is the total cost per year (holding plus setup)?
