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Wheel-Rite, a small producer of metal parts, supplies XYZ, a larger assembly company, with 90000 wheel bearings each year. The setup cost for Wheel-Rite is
Wheel-Rite, a small producer of metal parts, supplies XYZ, a larger assembly company, with 90000 wheel bearings each year. The setup cost for Wheel-Rite is $210 and the holding cost is $4.8/wheel bearing/year. Wheel-Rite can produce 1200 wheel bearings/day. XYZ requires that 300 bearings be shipped to it each business day. What is the economic lot size, i.e, the economic order quantity in the production setting
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