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What is the optimum production quantity

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Reference no: EM131889149

a) What is the optimum production quantity? _______units (round your response to the nearest whole number)

b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?_______ units (round your response to the nearest whole number)

c)How many production runs of wheel bearings will Wheel-Rite have in a year?_______runs (round your response to two decimal places)

d)What is the toal setup plus holding cost for Wheel-Rite? $________ (round your response to two decimal places)

Could you please show every single step you took to get each result.

Wheel-Rite supplies Cal-Tex, a larger assembly company, with 9,500 wheel bearings each year. This order has been stable for some time.

Setup cost for Wheel Rite is $39, and holding cost is $0.40 per wheel bearing per year. Wheel-Rite can produce 510 wheel bearings per day.

Cal-Tex is a just-in-time manufacturer and requires that 48 bearings be shipped to it each business day. a) What is the optimum production quantity?

units (round your response to the nearest whole number). Enter any number or expression in the edit field, then click Check Answer

Reference no: EM131889149

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