The following data apply to machining part on turret lathe
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General Purpose lathe
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Turret lathe
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Cycle Time
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20 min
|
5 min
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Labour rate
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Rs. 11/hr
|
Rs. 8/hr
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Machine rate
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Rs. 7/hr
|
Rs. 10/hr
|
The setup cost and the cost for special tooling on the turret lathe would be Rs.3000/-. These costs are negligible on the general purpose lathe. Calculate the batch size which justified the use of turret lathe