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Part $1$

Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of $300$ days.

Annual demand for steering wheels

$33$ comma $000$

Daily demand

$110$

Daily production$(8$ hours$)$

$960$

Desired lot size$(2$ hours of$$ production$)$

$240$

Holding cost per unit per year

$$$$14$

Part $2$

$$a$)$ What is the setup$$ cost$,$ based on the desired lot$$ size?

Setup costequals$$$

$$

enter your response here $($round your response to two decimal$$ places$).$

Part $3$

$$b$)$ What is the setup$$ time, based on $$$$40$ per hour setup$$ labour?

Setup timeequals

$$

enter your response here minutes $($round your response to two decimal$$ places$).$