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Lady Raider Inc. manufactures trailer hitches in Lubbock, Texas. The plant has an average inventory turnover of year. Management has determined to reduce their component lot sizes. The following data is for one componen chain chip. How many minutes of setup time should the plant manager aim for this component?

Annual Demand $=32,000$ units

Daily Demand $=120$ units per day $($assuming a $250$ day work year$)$

Daily Production Rate $=1,000$ units per day

Production EOQ Desired $=120$ units

Carrying Costs $=$$$12$ per unit per year

Hourly Labor Rate $=$$$20$

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