Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 1 2 times

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:
\table[[Setup labor cost,$25 per hour],[Annual holding cost,$15 per unit],[Daily production,1,008 units/8 hour day],[Annual demand,36,000(250 days each daily demand of 144 units)],[Desired lot size,126 units (one hour of production)]]
To obtain the desired lot size, the set-up time that should be achieved = minutes (round your response to two decimal places).
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cyber Security And Supply Chain Management

Authors: Steven Carnovale, Sengun Yeniyurt

1st Edition

9811231567, 978-9811231568

More Books