Question
A toy manufacturer uses 51,920 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce
A toy manufacturer uses 51,920 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 900 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1.90 per wheel per year. Setup cost for a production run is $43. The firm operates 236 days per year. Determine the following:
a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.)
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.)
c. Cycle time for the optimal run size (Round your answer to two decimal points.)
d. Run time (Round your answer to two decimal points.)
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