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 $20 per hour Annual holding cost $13 per unit Daily production 992 units/8 hour day Annual demand 25,300 (275 days each×daily demand of 92 units) Desired lot size 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).
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 $20 per hour Annual holding cost $13 per unit Daily production 992 units/8 hour day Annual demand 25,300 (275 days each×daily demand of 92 units) Desired lot size 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).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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
|
$20
per hour |
|
Annual holding cost
|
$13
per unit |
|
Daily production
|
992
units/8 hour day |
|
Annual demand
|
25,300
(275
days
each×daily
demand of
92
units) |
|
Desired lot size
|
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).
minutes (round your response to two decimal places).
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