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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 300 days.
Setup labor cost 40.00 per hour
Annual holding cost ? $17 per unit
Daily production? (8 hours) 800 ?units/day
Annual demand for steering wheels 36,000 ?(300 days times ×daily demand of 120 ?units)
Desired lot size? (2 hours of? production) Q? = 200 units
A) Setup cost = ? (round anser to two decimal places)
B) Setup time = ? (round answer to two decimal places)
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