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Carol Cagle has a repetitive manufacturing plant producing trailer hithces 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: $16 per unit
Daily Production: 960 units in 8 hours per day
AnnualDemand: 45,360 (270 days each * daily demand of 168 units)
Desired Lot Size: 120 units
To obtain the desired lot size, the set-up time that should be achieved should be: ___________________ (in minutes rounded to two decimal places)
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