A certain piece of production equipment is used to produce various components for an assembled\nproduct. To keep in-process inventories low, it is desi
A certain piece of production equipment is used to produce various components for an assembled
\r\nproduct. To keep in-process inventories low, it is desired to produce the components in batch sizes
\r\nof 150 units. Demand for each product is 2500 units per year. Production downtime costs an
\r\nestimated $200/hr. All of the components made on the equipment are of approximately equal unit
\r\ncost, which is $9.00. Holding cost rate = 30%/yr. In how many minutes must the changeover
\r\nbetween batches be completed in order for 150 units to be the economic order quantity?
\r\n