Question: A certain machine tool is used to produce several components for one assembled product. To keep in-process inventories low, a batch size of 100 units is produced for each component. Demand for the product = 3000 units/yr. Production downtime costs an estimated $150/hr. All parts produced on the machine tool arc approximately equal in value: $9.00 unit. Holding cost rate = 30%/yr. How many minutes must the changeover between batches be so that 100 units is the economic order quantity?