A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecasts and processing times on the machines are as follows: Processing Time per Unit (minutes) Product Annual Demand A B C 1 16000 3 4 2 2 12000 4 4 3 3 6000 5 6 4 4 30000 2 2 1 a.) Assume that machines operate 10 hours a day, 250 days a year. If we only consider purchasing costs, which machine would have the lowest total cost? b.) Assume machines operate 10 hours a day, 250 days a year. If we select machine A, how many machine A do we need? (Use common sense to decide the answer.)
A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine Cost A $40,000 B $30,000 C $80,000 Product forecasts and processing times on the machines are as follows: Processing Time per Unit (minutes) Product Annual Demand A B C 1 16000 3 4 2 2 12000 4 4 3 3 6000 5 6 4 4 30000 2 2 1 a.) Assume that machines operate 10 hours a day, 250 days a year. If we only consider purchasing costs, which machine would have the lowest total cost? b.) Assume machines operate 10 hours a day, 250 days a year. If we select machine A, how many machine A do we need? (Use common sense to decide the answer.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section12.5: Analytic Steady-state Queueing Models
Problem 30P
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A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows:
Machine Cost
A $40,000
B $30,000
C $80,000
Product
Processing Time per Unit (minutes) | ||||
Product |
Annual Demand |
A | B | C |
1 | 16000 | 3 | 4 | 2 |
2 | 12000 | 4 | 4 | 3 |
3 | 6000 | 5 | 6 | 4 |
4 | 30000 | 2 | 2 | 1 |
a.) Assume that machines operate 10 hours a day, 250 days a year. If we only consider purchasing costs, which machine would have the lowest total cost?
b.) Assume machines operate 10 hours a day, 250 days a year. If we select machine A, how many machine A do we need? (Use common sense to decide the answer.)
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