A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8,000 units. Steel costs Php 3.80 per kg, while aluminum costs Php 8.70 per kg. If steel is used, the steel per unit weighs 110 grams; for aluminum, 30 grams. When steel is used, 50 units can be produced per hour; for aluminum 80 units per hour with the aid of a tool costing Php 640.00, which will be useless after the 8,000 units are finished. The cost of the machine and operator is Php 10.80 per hour. If all other costs are identical, determine which material will be more economical.
A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8,000 units. Steel costs Php 3.80 per kg, while aluminum costs Php 8.70 per kg. If steel is used, the steel per unit weighs 110 grams; for aluminum, 30 grams. When steel is used, 50 units can be produced per hour; for aluminum 80 units per hour with the aid of a tool costing Php 640.00, which will be useless after the 8,000 units are finished. The cost of the machine and operator is Php 10.80 per hour. If all other costs are identical, determine which material will be more economical.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8,000 units. Steel costs Php 3.80 per kg, while aluminum costs Php 8.70 per kg. If steel is used, the steel per unit weighs 110 grams; for aluminum, 30 grams. When steel is used, 50 units can be produced per hour; for aluminum 80 units per hour with the aid of a tool costing Php 640.00, which will be useless after the 8,000 units are finished. The cost of the machine and operator is Php 10.80 per hour. If all other costs are identical, determine which material will be more economical.
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