# A supplier to Ford stamps out parts using a press. Changing a part type requires the supplier to…

A supplier to Ford stamps out parts using a press. Changing a part type requires the supplier to…

A supplier to Ford stamps out parts using a press. Changing a part type requires the supplier to change the die on the press. This changeover currently takes four hours. The supplier estimates that each hour spent on the changeover costs \$250. Demand for parts is 1,000 per month. Each part costs the supplier \$100, and the supplier incurs an annual holding cost of 25%.

Ford would like the supplier to reduce their batch size by a factor of four; that is, if the supplier currently produces Q parts per batch, Toyota would like them to produce Q/4 parts per batch. Based on what the supplier should modify in order to achieve this result, what must this correctly chosen value (C, H, R, or S) be in order to reduce the batch size by a factor of 4:

(Your answer must be numbers only, no symbols or words specifying unit of measure. Given 3 of the options are dollar amounts, your answer must include two decimal places, even if they are zeros, regardless of whether it is a dollar amount or not).

Modified value is:________

A supplier to Ford stamps out parts using a press. Changing a part type requires the supplier to…