Randas Commercial Bakery produces cupcakes to be sold in supermarkets in Egypt. The production line is available
Question:
Randas Commercial Bakery produces cupcakes to be sold in supermarkets in Egypt. The production line is available 12 hrs/day and is currently producing in large lots. The manager wants to reduce the production cycle to 4 hours. Given the data below, what is the setup time needed?
Annual Demand = 180,000 cupcakes
Number of working days per year = 250 days/year
Production capacity = 1,000 cupcakes/day
Holding cost = LE 40 per unit per year
Setup labor cost per hour = LE 20
How many minutes of setup time should she have her plant manager aim for regarding this component?
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Divide the setup time in years by the number of working days per y...View the full answer
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