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
10 comma 20010,200
wheel bearings each year. This order has been stable for some
time. Setup cost for Wheel-Rite is
$3838,
and holding cost is
$0.400.40
per wheel bearing per year. Wheel-Rite can produce
530530
wheel bearings per day. Cal-Tex is a just-in-time manufacturer
and requires that
5252
bearings be shipped to it each business day.
a) What is the optimum production quantity?
nothing
units (round your response to the nearest whole
number).





