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Arthur Meiners is the production manager of Wheel - Rite, a small producer of metal parts. Wheel - Rite supplies Cal - Tex, a larger
Arthur Meiners is the production manager of WheelRite, a small producer of metal parts. WheelRite supplies CalTex, a larger assembly company, with wheel bearings each year. This order has been stable for some time. Setup cost for WheelRite is $ and holding cost is $ per wheel bearing per year. WheelRite can produce wheel bearings per day. CalTex is a justintime manufacturer and requires that bearings be shipped to it each business day.
Part
a What is the optimum production quantity? units round your response to the nearest whole number
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b What is the maximum number of wheel bearings that will be in inventory at WheelRite? units round your response to the nearest whole number
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c How many production runs of wheel bearings will WheelRite have in a year? runs round your response to two decimal places
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d What is the total setup plus holding cost for WheelRite? $enter your response here round your response to two decimal places
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