Acme stamping produces seat brackets for a major manufacturer of stadium seating. They sell an average of 57,000 brackets per year. Their stamping machine operates for 8 hours per day, 250 days per year and can produce 150 brackets per hour. It costs them \$370 to set up the stamping machine for a production run. The brackets cost \$0.47 each to make, and Acme uses 20% of the unit cost to estimate the annual inventory holding cost. Calculate the economic production quantity for seat brackets.

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Acme stamping produces seat brackets for a major manufacturer of stadium seating. They sell an average of 57,000 brackets per year. Their stamping machine operates for 8 hours per day, 250 days per year and can produce 150 brackets per hour. It costs them \$370 to set up the stamping machine for a production run. The brackets cost \$0.47 each to make, and Acme uses 20% of the unit cost to estimate the annual inventory holding cost. Calculate the economic production quantity for seat brackets.

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Step 1

given

D = 57000

P = 150 units/hr X 8 hr

= 1200 units/day

S = 370/set up

Step 2
Step 3

set up the stamping machibe

C...

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