mework

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

HW Score: $80\%,8$ of $10$ points

Points: $0$ of $1$

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,$$25$ per hour$],[$Annual holding cost,$$16$ per unit$],[$Daily production,$1,008$ units$/8$ hour day$],[$Annual demand,$42,000(250$ days each $$ daily demand of $168$ un$],[$Desired lot size,$126$ 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$).$