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The standard time at Lensco Inc for grinding a set of prescription lenses is 18 minutes. If the typical efficiency for their operations is 80%, and typical machine reliability is 87% how many machines are required to meet the forecast of 17,247 lens sets for 2007? (They currently work 7.2 hour/shift, 6 shifts per week, 50 weeks per year)
S = 18E= 80%R= 87%Forecast of 17,247F = S Q / E H R
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Given the above information, what would be the economic order quantity (EOQ)?
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