Please check the question and answer carefully, I asked this question before and it was incorrect.

Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with

10,600

wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is

$42,

and holding cost is

$0.70

per wheel bearing per year. Wheel-Rite can produce

490

wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that

47

bearings be shipped to it each business day.

a) What is the optimum production quantity? units (round your response to the nearest whole number).

b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite? units (round your response to the nearest whole number).

c) How many production runs of wheel bearings will Wheel-Rite have in a year. runs (round your response to two decimal places)

d) What is the total setup plus holding cost for Wheel-Rite? $ (round your response to two decimal places)