Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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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 9,700 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $39, and holding cost is $0.60 per wheel bearing per year. Wheel-Rite can produce 450 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 48 bearings be shipped to it each business day.
a) What is the optimum production quantity?
units (round your response to the nearest whole number).
units (round your response to the nearest whole number).
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