Problem 1: JIT Setup Cost and Time Suppose that Roger, a production manager, is trying to...

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Problem 1: JIT Setup Cost and Time Suppose that Roger, a production manager, is trying to run JIT. The product Annual Demand is 300,000 units, with 250 working days in a year, which means daily demand is 1200. The desired lot size will be 1200/3 400 for Q. His production line can produce 2400 units per day. Holding cost is $30/unit. a) What will his setup cost be for one setup? b) What will his permitted setup time be (in hours), if the wage rate is $20 for one employee? Problem 1: JIT Setup Cost and Time Suppose that Roger, a production manager, is trying to run JIT. The product Annual Demand is 300,000 units, with 250 working days in a year, which means daily demand is 1200. The desired lot size will be 1200/3 400 for Q. His production line can produce 2400 units per day. Holding cost is $30/unit. a) What will his setup cost be for one setup? b) What will his permitted setup time be (in hours), if the wage rate is $20 for one employee?

Answer rating: 100% (QA)

a To calculate the setup cost for one setup we can use the economic production quantity EPQ model Th... View the full answer