Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2.9-MGD tower is $153,200. The exponent in the cost-capacity equation is 0.47. The cost of a 0.75 million gallon per day induced-draft packed tower is $

Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2.9-MGD tower is $153,200. The exponent in the cost-capacity equation is 0.47. The cost of a 0.75 million gallon per day induced-draft packed tower is $

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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Similar questions

In considering a capacity expansion, we have two alternatives. The first alternative is expected to cost $1,000,000 and has an expected profit of $500,000 over the next three years. The second alternative has an expected cost of $800,000 and an expected profit of $450,000 over the next three years. Which alternative should we select, and what is the expected value of the expansion? Assume a 10 percent interest rate.
Suppose that an aircraft manufacturer desires to make a preliminary estimate of the cost of building a 600-MW fossil-fuel plant for the assembly of its new longdistance aircraft. It is known that a 200-MW plant cost $100 million 20 years ago when the approximate cost index was 400, and that cost index is now 1,200. The cost-capacity factor for a fossil-fuel power plant is 0.79. Estimate the cost using power sizing method.
A company has a factory that is designed so that it is most eficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?
A company has a factory that is designed so that it is most efi cient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?
Suppose that an aircraft manufacturer desires to make a preliminary estimate of the cost of building a 600-MW fossil-fuel plant for the assembly of its new long-distance aircraft. It is known that a 200-MW plant cost $100 million 20 years ago when the approximate cost index was 400, and that cost index is now 1,200. The cost-capacity factor for a fossil-fuel power plant is 0.79.
A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?
Techno Corporation is currently manufacturing an item at variable costs of $5 per unit. Annual fixed costs of manufacturing this item are $140,000. The current selling price of the item is $10 per unit, and the annual sales volume is 30,000 units. so Techno can substantially improve the item’s quality by installing new equipment at additional annual fixed costs of $60,000. Variable costs per unit would increase by $1, but, as more of the better-quality product could be sold, the annual volume would increase to 50,000 units. Should Techno buy the new equipment and maintain the current price of the item? Why or why not?
A manufacturer of ballet shoes has determined that its production facility has a design capacity of 300 shoes per week. Theeffective capacity, however, is 230 shoes per week. What is themanufacturer’s capacity utilization relative to both design andeffective capacity if output is 200 shoes per week?
Thomas Pang Furniture produced 70,000 Executive chairs per week. The effective capacity is 71,000 chairs. The production line operates 5 days per week with two 6-hour shifts per day. The line was designed to process the Executive chairs at the rate of 1,200 per hour. Determine the design capacity, utilization and efficiency for this plant when producing the Executive chair. Thomas Pang Furniture now needs to increase production of the Executive chairs. A second production line will be added. Effective capacity on this second line is the same as the first line at 71,000 Executive chairs. The first line is operating at a higher efficiency but output on the second line will be no more than 75% because the crew will be primarily new hires. Determine the expected output of this second line.
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Techno Corporation is currently manufacturing an item at vanable costs of $4 per unit. Annual fixed costs of manufacturing this item are $141,000. The current selling price of the item is $10 per unit, and the annual sales volume is 35,000 units a. Techno can substantially improve the item's quality by installing new equipment at additional annual fixed costs of $55,000 Vanable costs per unit would increase by $1, but, as more of the better-quality product could be sold, the annual volume would increase to 60,000 units. Should Techno buy the new equipment and maintain the current price of the item? Why or why not? because the profit from $to $(Enter your responses an integers)
A real estate agent is considering changing her cell phone plan. There are three plans to choosefrom, all of which involve a monthly service charge of $20. Plan A has a cost of $.45 a minute fordaytime calls and $.20 a minute for evening calls. Plan B has a charge of $.55 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 200 minutes ofcalls allowed per month and a charge of $.40 per minute beyond that, day or evening.a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month.