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 Annual holding cost Daily production Annual demand Desired lot size $25 per hour $12 per unit 992 units/8 hour day 24,840 (270 days each x daily demand of 92 units) 124 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved = decimal places). minutes (round your response to two

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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
Annual holding cost
Daily production
Annual demand
Desired lot size
$25 per hour
$12 per unit
992 units/8 hour day
24,840 (270 days each x daily demand of 92 units)
124 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).
Transcribed Image Text: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 Annual holding cost Daily production Annual demand Desired lot size $25 per hour $12 per unit 992 units/8 hour day 24,840 (270 days each x daily demand of 92 units) 124 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).
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