Question: (b) 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

(b) Arthur Meiners is the production manager of Wheel- Rite, a

(b) 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 10,000 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $40, and holding cost is $60 per wheel bearing per year. Wheel-Rite can produce 500 wheel bearings per day Cal-Tex is a just-in-time manufacturer and requires that 50 bearings be shipped to it each business day. [4 marks] 1) What is the optimum production quantity? ii) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite? iii) How many production runs of wheel bearings will Wheel-Rite have in a year? iv) What is the total cost for Wheel-Rite

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