A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year.
$$\begin{array} { | l | r | }
\hline \text { Annual demand } & 22,000 \
\hline \text { Daily demand } & 88 \
\hline \text { Daily production } & 250 \
\hline \text { Desired lot size (2 hours of production) } & 63 \
\hline \text { Holding cost per unit per year } & \$ 50 \
\hline
\end{array}$$ a. What is the setup cost, based on the desired lot size?
b. What is the setup time, based on $40 per hour setup labor?

Question

A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year.
 $$\begin{array} { | l | r | } 
\hline \text { Annual demand } & 22,000 \
\hline \text { Daily demand } & 88 \
\hline \text { Daily production } & 250 \
\hline \text { Desired lot size (2 hours of production) } & 63 \
\hline \text { Holding cost per unit per year } & \$ 50 \
\hline
\end{array}$$ a. What is the setup cost, based on the desired lot size?
b. What is the setup time, based on $40 per hour setup labor?

Quizplus · Accepted Answer

The Answer of A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year.
 $$\begin{array} { | l | r | } 
\hline \text { Annual demand } & 22,000 \
\hline \text { Daily demand } & 88 \
\hline \text { Daily production } & 250 \
\hline \text { Desired lot size (2 hours of production) } & 63 \
\hline \text { Holding cost per unit per year } & \$ 50 \
\hline
\end{array}$$ a. What is the setup cost, based on the desired lot size?
b. What is the setup time, based on $40 per hour setup labor?

A Repetitive Manufacturing Firm Is Planning on Level Material Use