Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of

295295

days.

Setup labor cost	$60 per hour
Annual holding cost	$15 per unit
Daily production (8 hours)	880 units/day
Annual demand for steering wheels	29500(295 days*timesdaily demand of 100 units))
Desired lot size (2 hours of production)	Q = 220 units

a) Setup cost =

(round your response to two decimal places).

b setup time=

(round your response to two decimal places).

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	$25 per hour
Annual holding cost	$12 per unit
Daily production	960 units/8 hour day
Annual demand	38,880 (270 days each*timesdaily demand of 144 units)
Desired lot size	120 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).