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JL . 5 3 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates

JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 250 days per year and has annual demand of 63,000 bumpers. They can produce up to 360 bumpers each day. It costs $52 to set up the production line to produce bumpers. The cost of each bumper is $90 and annual holding costs are $39 per unit. Setup labor cost is $25 per hour.

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