Given the following information about a product, at Phyllis Simon\'s firm, what
ID: 2600635 • Letter: G
Question
Given the following information about a product, at Phyllis Simon's firm, what is the appropriate setup time?
Setup labor cost
$45.00 per hour
Annual holding cost
$22 per unit
Daily production
1,200 units/day
Annual demand
26,000
(260 days eachtimes×daily demand of 100 units)
Desired lot size
300 units
Set up time = ______ minutes (round to two decimal places)
Setup labor cost
$45.00 per hour
Annual holding cost
$22 per unit
Daily production
1,200 units/day
Annual demand
26,000
(260 days eachtimes×daily demand of 100 units)
Desired lot size
300 units
Set up time = ______ minutes (round to two decimal places)
Explanation / Answer
Labour working for a day=8 hours
For 100 units annual demand=26000
For 300 units demand would be=26000×3=78000
=78000/8=9750 hrs required
So minutes would =9750/60=163 minutes
Ans:163 minutes
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