A company uses a two-step process to make a part. The first step involves a drill press that requires a 60-minute setup time before the production of each batch can begin. After that, one unit can be drilled every 6 minutes. The second step involves attaching the drilled item to another device which takes 8 minutes per unit. Demand is 5 units per hour. What is the ideal batch size of the parts?

Answer rating: 100% (QA)

To determine the ideal batch size we can use the Economic Order Quantity EOQ formula ... View the full answer