Setup labor cost = $60.00 per hour
Annual holding cost(H) = $13 per unit
Daily production rate(p) = 960 units
Annual demand (D) = 31900
Daily demand rate(d) = 110 units
Desired lot size(Q) = 240 units
Setup cost = {square of Q × H × [1-(d/p)]} / 2D
= {square of 240 × 13 × [1-(110/960) ]} / (2 × 31900)
= {57600 × 13 (1-0.11) } / 63800
= (57600 × 13 × 0.89) / 63800
= 666432 / 63800
= $10.45
Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to...
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 290 days. Setup labor cost $40.00 per hour Annual holding cost $16 per unit Daily production (8 hours) 960 units/day Annual demand for steering wheels 29,000 (290 days×daily demand of 100 units) Desired lot size (2 hours of production) Q= 240 units A) what is the setup cost? B) what is...
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 year of 290 days. Setup labor cost $40.00 per hour Annual holding cost $15 per unit Daily production (8 hours) 800 units/day Annual demand for steering wheels 34,800 (290 days x daily demand of 120 units) Desired lot size (2 hours of production) Q = 200 units a) Setup cost = $ (round your response...
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 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...
Problem 16.1 : Question Help Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip Setup labor cost $30 per hour Annual holding cost $14 per unit Daily production 960 units/8 hour day Annual demand 33,000 (275 days each...
Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost Annual holding cost Daily production Annual demand Desired lot size $30 per hour $14 per unit 1,008 units/8 hour day 43,680 (260 days each x daily...
gle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $2525 per hour Annual holding cost $1212 per unit Daily production 1 comma 0081,008 units/8 hour day Annual demand 36 comma 00036,000 (250250 days eachtimes ×daily demand...
Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost Annual holding cost Daily production Annual demand Desired lot size $20 per hour $12 per unit 976 units/8 hour day 25,300 (275 days each x daily...
Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $25 per hour Annual holding cost $14 per unit per unit Daily production 992 units/8 hour day Annual demand 25300 (275 days each ×daily demand of...
3. A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year. Annual demand (D) 20,000 Daily demand (d) Daily production (p) 250 Desired lot size (Q) Holding cost per unit per year (H) $50 1) What is the setup cost based on the desired lot size? (10 points) 80 2) What is the desired setup time based on $50 hour setup labor? (10 points) 3) Theoretically,...
JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 290 days per year and has annual demand of 75,000 bumpers. They can produce up to 330 bumpers each day. It costs $59 to set up the production line to produce bumpers. The cost of each bumper is $131 and annual holding costs are $37 per unit. Setup labor cost is $28 per hour. What is the optimal...