A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle
Based on the following data, what setup cost will enable the desired production cycle?
d = 400 per day (250 days per year), p = 4000 units per day, H = $40 per unit per year, and Q = 200 (demand for four hours, half a day).
A) $2.00
B) $7.20
C) $18.00
D) $64.00
E) $1,036.80
B
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What will be an ideal response?
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Answer the following statement true (T) or false (F)