1 answer

A) Setup Cost: b) Setup Time: Rick Wing has a repetitive manufacturing plant producing automobile steering...

Question:

a) Setup Cost:
b) Setup Time:
Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a
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 305 days. Setup labor cost $40.00 per hour Annual holding cost $16 per unit Daily production (8 hours) 800 units day Annual demand for steering wheels 36,600 (305 days x daily demand of 120 units) Desired lot size (2 hours of production) 0 - 200 units a) Setup cost-$ (round your response to two decimal places).

Answers

Cicen, Holding Setup labor cost $40/hr Cost (H) = $16/u Daily production (p)= 800 u Annual demand (D)= 36600 daily demand (d)

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