To obtain the desired lot size the set-up time that should


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. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip:

Setup labor cost $30 per hour

Annual holding cost $15 per unit

Daily production 960 units/8 hour day

Annual demand 45,360 (270 days each times ×daily demand of 168 units)

Desired lot size 120 units (one hour of production)

To obtain the desired lot size, the set-up time that should be achieved = ___ minutes (round your response to two decimal places).

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Operation Management: To obtain the desired lot size the set-up time that should
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