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Rick wing has a repetitive manufacturing plant producing automobile steering wheels, use the following date to prepare for a reduce lots size , the firm uses a work year of 295 days ;
Setup labor cost per hour = $ 40
Annual Holding cost per unit year = $ 13
Daily production ( 8 hours) = 800 units / day
Annual Demand = 30,975 (295 days each * daily demand of 105)
Desired lot size (2 hour or production) = 200 units
Find;
a. setup cost ?
b. setup time?
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