Homework

Question $5,$ Problem $16\mathrm{.}1$

HW Score: $48\mathrm{.}65\%,18$ of $37$ points

Points: $0$ of $3$

Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only $12$ times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip:

$\backslash$table$[[$Setup labor cost,$$30$ per hour$],[$Annual holding cost,$$12$ per unit$],[$Daily production,$992$ units$/8$ hour day$],[$Annual demand, days each $$ daily demand of $120$ units$)],[$Desired lot size,$124$ units $($one hour of production$)]]$

To obtain the desired lot size, the set$-$up time that should be achieved $=$ minutes $($round your response to two decimal places$).$