A manager must decide which type of machine to by A, B or C
Question
A manager must decide which type of machine to by A, B or C. Machine cost (per individual machine)are as follows
Machine.
A $50000
B $40000
C $70000
Product forecast and processing times on the machines are as follows
Annual demand A. B. C
- 27000 1 1. 1
- 13000 6 3. 3
- 28000 3. 2. 2
4. 29000 3. 3. 6.
Assume that only purchasing cost are being considered. Compute the total processing time required for each machine type to meet demand, how Many of each machine type would be needed and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 200 days a year ( enter total processing time as hole numbers. Round up machine quantities to the next higher hole number. Compute total processing cost using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the $ sign
Total processing time in minutes per machine
A.
B
C.
Number of each machine needed and total purchasing cost
A.
B
C.
B. Consider the additional information: the machines differ in terms of hourly operating cost: The A machines have an hourly operating cost of $12 each. B machine have an hourly operating cost of $15 each and c machines have an hourly operating cost of $13 each. What would be the total cost associated with each machine option, include both the initial purchasing cost and annual annual operating cost incurred to satisfy demand? (use rounded machine quantities from part A, round your final answers to the nearest whole number)
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