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Wheel - Rite, a small producer of metal parts, supplies Cal - Tex, a larger assembly company, with wheel bearings each year. This order has
WheelRite, a small producer of metal parts, 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.
Part
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.
Part
c How many production runs of wheel bearings will WheelRite have in a year?
enter your response here runs Round your response to two decimal places.
Part
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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