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Assignment:
A factory operates 8 hours per day for 280 days per year, and has a demand of 800 units per day. There are two production cycles per day (one for BLUE units and one for RED units) resulting in a target lot quantity (Qp) of 400 units per production run. Assume the following: - the company is capable of producing 12,000 units per day - the holding cost per unit is $3 per year - the labor rate to do equipment set-ups is $12 per hour. To produce each color (blue or red) the production line must be quickly re-configured, cleaned, and set-up. Given the above data what is the target set-up time in the factory?
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