Business, 06.05.2020 03:31 lilyrockstarmag

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 11 comma 300 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $39, and holding cost is $0.50 per wheel bearing per year. Wheel-Rite can produce 530 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 49 bearings each business day.

a) What is the optimum production quantity?
b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?
c)How many production runs of wheel bearings will Wheel-Rite have in a year?
d)What is the toal setup plus holding cost for Wheel-Rite?

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Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite...

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