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a) What is the optimum production quantity?. b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite? c) How

a) What is the optimum production quantity?.
b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?
c) How many production runs of wheel bearings will Wheel-Rite have in a year?
d) What is the total setup plus holding cost forWheel-Rite?
image text in transcribed
Arthur Meiners in the production manager of Whool Rolea small producer of metal parts. Whool-Rite supplies Cal-Tex, a larger assembly company, with 10,100 wheel bearings ench year. This order has been stable for some time. Setup cost for Whool. Rhe is $38, and holding cost is $0.60 per wheel bearing per year. Wheel Rito con produce 540 wheel bearings per day. Carl-Tex in a just in time manufacturer and requires that 47 bearings be shipped to teach business day. a) What is the optimum production quently units fround your response to the rearned wholo rumber)

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