Annual demand for steering wheels 30,500 Daily demand 100 Daily production (8 hours) 800 Desired lot size (2 hours of production) 200 Holding cost per unit per year $10
Annual demand for steering wheels 30,500 Daily demand 100 Daily production (8 hours) 800 Desired lot size (2 hours of production) 200 Holding cost per unit per year $10
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
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
305 days.
a) What is the setup cost, based on the desired lot size?
b) What is the setup time, based on $40 per hour setup labor?
Transcribed Image Text:Annual demand for steering wheels
30,500
Daily demand
100
Daily production (8 hours)
800
Desired lot size (2 hours of production)
200
Holding cost per unit per year
$10
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