Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost Annual holding cost Daily production Annual demand Desired lot size To obtain the desired lot size, the set-up time that should be achieved = $30 per hour $13 per unit 960 units/8 hour day 23,920 (260 days each x daily demand of 92 units) 120 units (one hour of production) minutes (round your response to two decimal places).

Carol Cagle has a repettive manufacturing plant producing traier hitches in Aington, Texas. The plant has an average invertory tumover of any 12 Imes per year. He has therefore detormined that he will reduce his component lot sizes. He has developed the following data for one component, the safoty chan clip. \begin{tabular}{ll} Solup labor cost & $30 per hour \\ Annual holeing ocst & $13 per unit \\ Daly production & 960 unitse hour day \\ Amnal detrand & 23.920 (260 days each daly demand of 92 units) \\ Desired lot sito & 120 units (one hour of production) \end{tabular}