PA machine shop manufactures custom brake disks for high performance cars. The shop needs to meet a demand of 1200 units per year. For each production run there is a setup cost of 1200 dollars, and...

Extracted text: PA machine shop manufactures custom brake disks for high performance cars. The shop needs to meet a demand of 1200 units per year. For each production run there is a setup cost of 1200 dollars, and there is a cost of 90 dollars per unit for materials and supplies. Storage of unsold units costs the shop 18 dollars per year. How many units should the shop produce on each production run in order to minimize inventory costs (setup plus storage)? Round your answer to the nearest integer. Answer: 90 units per production run