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A toy manufacturer uses 47,600 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can
A toy manufacturer uses 47,600 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 700 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1.40 per wheel per year. Setup cost for a production run is $38. The firm operates 238 days per year. Determine the following: a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.) EPO b. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a whole number) Total Annual Inventory Cost c. Cycle time for the optimal run size (Round your answer to two decimal points.) Cycle Time to two decimal points)
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