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Cicen, Holding Setup labor cost $40/hr Cost (H) = $16/u Daily production (p)= 800 u Annual demand (D)= 36600 daily demand (d) = 120 Desired lot 200 u Size (q) = → We know that a 2XDXO where H( - - ) O Setup cost QʻxHx(1-/p) a) > o 2 XD = 2007X16X11 120 800 :) $7:43 2x 36600 o 7.43 b) Now, Setup time = x 60mins Ihr Yo plabor labor cost 11.15 minutes

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