Natasha, a 29-year-old software developer at Widget Corp., has become a valuable member of her team over the past 5 years. She i
1 answer:
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Answer:
setup cost = $1.75
setup time = 2.625 min
Explanation:
given data
firm operates = 250 days per year
Annual demand = 22,000
Daily demand = 88
Daily production = 250
Desired lot size = 63 (2 hours of production)
Holding cost = $40 per unit per year
to find out
setup cost and setup time
solution
we find first setup cost that is express as
setup cost = ......................1
here Q is Desired lot size and H is Holding cost and d is Daily demand and D is Annual demand and p is Daily production
put here value
setup cost =
setup cost =
setup cost = $1.75
and
setup time is
setup time = ....................2
setup time =
setup time = 2.625 min