An engineering company uses a special type of pin at an approximately constant rate of 5000 units per year. The pins are manufactured at the company's own plant. Each pin costs the company Rs. 80. The setup cost per production run is Rs. 1600. The inventory carrying charges are estimated at 20% of the average inventory investment. What quantity of pins should be manufactured in each production run for minimum cost? Also find out the frequency of production runs to be made.
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