Carol Cagle has a repetitive manufacturing plant producing trailer hitches in? Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one? component, the safety chain? clip:
Setup labor cost ?$20 per hour
Annual holding cost ?$12 per unit
Daily production 960 ?units/8 hour day
Annual demand 43,680 ?(260 days each times × daily demand of 168 ?units)
Desired lot size 120 units? (one hour of? production)
To obtain the desired lot? size, the? set-up time that should be achieved? = ___ minutes ?(round your response to two decimal? places).