Discuss the below:
Q: 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 10,200 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $38, and holding cost is $0.80 per wheel bearing per year Wheel te can produce 480 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 50 bearings be shipped to it each business day.
a) What is the optimum production quantity?
b) What is the maximum number of wheel bearings that will be in inventory at?
c) How many production runs of wheel bearings will? Wheel-Rite have in a?