Massoud Furniture purchases a special wood used to manufacture kitchenette sets directly from the supplier. Massound kitchenette production, which is operated at a constant rate, will require 1750 logs of wood per month throughout the year (21,000 units annually). Assume that the ordering costs are $27 per order, the unit cost is $3.25 per component, and annual holding cost are 21% of the value of the inventory. Massoud has 250 working days per year and a lead time of 5 days. What is the cycle time for this component?
Use standard rules of rounding to achieve a whole number. That is, if the number to the right of the decimal is 5 or greater, increase the number in the rounding position by 1 (round up). If the number to the right of the decimal is less than 5, leave the number in the rounding position alone (round down).
a 15
b 64
c 53
d 19