Manufacturing plant producing automobile steering wheels

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Reference no: EM132260404

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 ?$60.00 per hour Annual holding cost ?$16 per unit Daily production? (8 hours) 960 ?units/day Annual demand for steering wheels 33,000 ?(300 days times daily demand of 110 ?units) Desired lot size? (2 hours of? production) Q? = 240 units ?a) Setup cost? = ?$ ?(round your response to two decimal? places). ?b) Setup time? = minutes ?(round your response to two decimal? places).

Reference no: EM132260404

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