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Arthur Meiners is the production manager of? Wheel-Rite, a small producer of metal parts.? Wheel-Rite supplies? Cal-Tex, a larger assembly? company, with 10 comma 70010,700 wheel bearings each year. This order has been stable for some time. Setup cost for? Wheel-Rite is ?$3838?, and holding cost is ?$0.600.60 per wheel bearing per year.? Wheel-Rite can produce 500500 wheel bearings per day.? Cal-Tex is a? just-in-time manufacturer and requires that 4646 bearings be shipped to it each business day.
ANSWER THE FOLLOWING:
a) What is the optimum production quantity? _______units (round your response to the nearest whole number)
b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?_______ units (round your response to the nearest whole number)
c) How many production runs of wheel bearings will Wheel-Rite have in a year?_______runs (round your response to two decimal places)
d) What is the total setup plus holding cost for Wheel-Rite? $________ (round your response to two decimal places)
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