Alpha Assemblies produces a wide variety of products in their central Nebraska facility. Many of these products fit within a line of standard truck and trailer parts. Within this is a set of hitches that can be made in two sizes (1-1/4 and 2) and five models (light duty, medium duty, medium duty with extender, heavy duty, and heavy duty with extender). All of the hitches in this line have "natural" finishes so no additional steps are necessary after they are cast. The machine used to cast these ten hitch variations is available for 2000 hours per year (40 hours per week for 50 weeks). Operators are paid $15.00 per hour including benefits.

Hitch B is the 1-1/4 inch, medium duty, natural hitch. This hitch has a forecast annual demand for next year of 3,469 units and has a current batch size of 1,500 units per production run. The unit processing time for this hitch is 0.0420 hours per unit, setup time using a single operator is 5.5 hours per setup and the holding cost per unit per year is $3.64. No additional costs are incurred in the setup process.

It was suggested that Simone had oversimplified her analysis because it would take longer get the same number of units produced if she used EOQ instead of the current batch sizes. How much longer (in hours) will it take to setup for and produce the annual volume of Hitch B if it is produced at its EOQ volume instead of at the current batch size?

Be sure to factor in the number of setups required in a year and produce total annual volume. The number of setups in a year does not need to be an integer. Don't round any numbers in the middle of the problem. Provide your answer to two (2) decimal places.

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