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A toy manufacturer uses 5 0 , 6 1 0 rubber wheels per year for its popular dump truck series. The firm makes its own
A toy manufacturer uses rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it c produce at a rate of per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $ per wheel per year. Setup cost for a production run is $ The firm operates days per year. Determine the following:
a Optimal run size Round your answer to a whole number, following normal rules of rounding.
EPQ
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
Run time Round your answer to two decimal points.
Run Time
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