Question: 4 . 2 . Arthur Phosa is the operations manager of AMF&M Inc., a manufacturer of metal parts. AMF&M supplies 1 0 0 0 0
Arthur Phosa is the operations manager of AMF&M Inc., a manufacturer of metal parts. AMF&M supplies wheel bearings each year to WPT Enterprises, a larger assembly Plant. This supply arrangement has been stable for several years. Setup cost for AMF&M is R and holding cost is R per wheel bearing per year. AMF&M can produce wheel bearings per day. WT Enterprises is a justintime manufacturer and requires that bearings be shipped to it each business day What is the optimum production quantity? What is the total setup and holding costs for AMF&M How many production runs of wheel bearings will AMF&M have in a year?
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