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Unformatted text preview: The firm makes its own wheels, which it can produce at a rate of 800 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1 per wheel a year. Setup cost for a production run of wheels is $45. The firm operates 240 days per year. Determine the a. Optimal run size. b. Minimum total annual cost for carrying and setup. c. Cycle time for the optimal run size. d. Run time. SOLUTION D = 48,000 wheels per year S = $45 H = $1 per wheel per year p = 800 wheels per day u = 48,000 wheels per 240 days, or 200 wheels per day a. b. Thus, you must first compute I max : c. d....
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- Spring '08
- Truck, total annual cost, Total order, optimal run size., radial ti res