Question: A certain machine tool is used to produce several components for one assembled product. To keep in process inventories low, a batch size of 100

A certain machine tool is used to produce several components for one assembled product. To keep in process inventories low, a batch size of 100 units is produced for each component. Demand for the product is 3000 units per year. Production downtime costs an estimated $150/hr. All parts produced on the machine tool are approximately equal in value: $9.00/unit. Holding cost rate is 30%/yr. In how many minutes must the changeover between batches be accomplished so that 100 units is the economic order quantity?

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