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Question
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. She has therefore determined that she will reduce her component lot sizes. She has developed the following data for one component, the safety chain clip:
Annual demand units
Daily demand units
Daily production (in 8 hours) units
Desired lot size ( 1 hour of production units
Holding cost per unit per year
Setup labor cost per hour
How many minutes of setup time should she have her plant manager aim for regarding this component?
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1 of 8In this problem, we are asked to determine the number of minutes for setup time.
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