Wheel-Rite, a small producer of metal parts, supplies XYZ, a larger assembly company, with 45000 wheel bearings each yea
Posted: Sun Jul 03, 2022 3:18 pm
Wheel-Rite, a small producer of metal parts, supplies XYZ, alarger assembly company,with 45000 wheel bearings each year. Thesetup cost for Wheel-Rite is $200 and theholding cost is $4.7/wheel bearing/year.Wheel-Rite can produce 225 wheelbearings/day. XYZ requiresthat 150 bearings be shipped to it eachbusiness day.What is the economic lot size, i.e, the economic order quantity inthe production setting? What is the maximum number of wheel bearings that will be ininventory at Wheel-Rite?