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Determining setup labor cost per hour

Assignment:

Given the following information about a product at Michael Gibson’s firm, what is the appropriate setup time?

Annual demand = 39,000 units
Daily demand = 150 units
Daily production = 1,000 units
Desired lot size = 150 units Holding cost per unit per year = S10
Setup labor cost per hour = S3/4

Provide complete and step by step solution for the question and show calculations and use formulas.

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Supply Chain Management: Determining setup labor cost per hour

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