X Problem 16.1 Question Help * Carol Cagle has a repetbtive manufacturing plant
ID: 367009 • Letter: X
Question
X Problem 16.1 Question Help * Carol Cagle has a repetbtive manufacturing plant producing trailer hitches in Arlington, Texas The plant has an average inventory turnmover 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 $20 per hour Annual holding cost $12 per unt Daily production 978 units/8 hour day Anual demand 32,400 (270 days each x daily demand of 120 units) Desired lot sze 122 units (one hour of production) To obtarte desired lot see, the set-up time that should be achieved [minutes (round your response to two deornal laces) nter your answer in the answer box and then cick Check Answo 801 PM All parts showing TOSHIBA FS 3 BACK SPALE 2 OCKExplanation / Answer
To obtain the desired lot size of 122 units, the set-up time that should be achieved can be calculated with the help of following formula
Q = {2*D*S/H*(1-d/p)}
The above formula can be re-written in following manner
Set-up cost S = Q^2*H*(1-d/p)/ (2D)
Where,
Set-up cost S =?
Desired lot size Q = 122 units
Annual holding cost = $12 per unit
Daily demand d = 120 units
Daily production p = 976 units
Annual demand D = 32,400 units
Therefore,
Set-up cost S = 122^2*12*(1- 120/976)/ (2*32,400)
= $2.417
Now set-up time = Set-up cost / Set-up labor cost per hour
=$2.417 / $20
= 0.12 hours or 7.25 minutes
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.