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

4.2. Arthur Phosa is the operations manager of AMF&M Inc., a manufacturer of metal parts. AMF&M supplies 100000 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 R800, and holding cost is R1.20 per wheel bearing per year. AMF&M can produce 500 wheel bearings per day. WT Enterprises is a just-in-time manufacturer and requires that 50 bearings be shipped to it each business day.4.2.1. What is the optimum production quantity?4.2.2. What is the total setup and holding costs for AMF&M?4.2.3. How many production runs of wheel bearings will AMF&M have in a year?

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