Concept explainers
A Southern Georgia school district is considering ordering 53 propane-fueled school buses. “They’re healthier, they’re cleaner burning, and they're much quieter than the diesel option.” said a school administrator. Propane-powered buses also reduce greenhouse gasses by 22% compared to gasoline-powered buses and 6% compared to diesel ones. But they come at a premium $103,000 for a propane model, $15,000 more than the diesel equivalent.
The propane bus operating cost (above and beyond fuel cost) is 30 cents/mile, compared to 40 cents for the diesel. Diesel fuel costs about $2/gallon in Georgia, about SI more than propane.
Bus mileage is 12 mpg for the propane model vs. 10 mpg for diesel. The life of a school bus in the district averages 9 years, and each bus travels an average of 30,000 miles per year because the district is so large and rural.
Which bus is the better choice based on a life-cycle analysis?
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
- This mcq Question from INTRODUCTION TO BUSINESS ADMINISTRATION course.arrow_forwardEthics RFID tags are extremely useful for retailers, but many consumers have responded negatively to them, even calling them "spy chips." What are the ethical issues that retailers must be aware of when they use these chips? What responsibility do retailers have to educate consumers about how they will use the information con- tained in these chips?arrow_forwardAmy lives in Papar but works in Kota Kinabalu. After struggling for years with public transport such as mini-buses and the train and receiving many complaints from fellow travelers, she has decided to look into providing several upgraded bus services in and around Kota Kinabalu which would provide more comfort and hygiene. The busses will be modern, air-conditioned and either hybrids or electrical. Amy is using the public transport busses as used in KL as a model. The prices charged to the customer would be somewhat above the current mini-bus prices but Amy believes that many commuters will be more than willing to pay a bit extra for a comfortable and safe alternative. Prepare Porter’s Five Forces for Amy’s planned bus services.arrow_forward
- Identify the causes of the bullwhip effect as well as the cures that go with them?arrow_forwardMira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new model of refrigerator made out of a synthetic material would sell well at a price of $430 per unit. Labor costs are estimated at $49 per unit and overhead costs would be $58 per unit. The major uncertainty is the price of the synthetic material. Mira Mesa is in negotiations with several suppliers for the material. Because of the risk associated with the new product, Mira Mesa will only proceed if the estimated return is at least 20 percent of the selling price Required: What is the most Mira Mesa can pay for the synthetic material per unit (refrigerator) and meet its profitability goal? (Do not round intermediate calculations.) Highest material price per unitarrow_forwardDiscount-Mart (see Problem 16.8), as part of its newLean program, has signed a long-term contract with SpecialtyLighting and will place orders electronically for its halogen lamps.Ordering costs will drop to $.50 per order, but Discount-Mart alsoreassessed its carrying costs and raised them to $20 per lamp.a) What is the new economic order quantity?b) How many orders will now be placed?c) What is the total annual cost of managing the inventory withthis policy?arrow_forward
- Midland Transmissions and Axels Inc. has been a very successful business catering to the light duty trucking industry for the past 11 years. Financial records show that for every year, except the first year, the actual grow rate exceeded the sustainable growth rate by 10 to 15 per cent yearly. The company is now faced with the need to quickly raise $60 million dollars in order in business. Old Dominion Bank and Bonds, Inc. a leading bank chartered in Hamilton, Ontario, is threatening Midland and Transmissions, that as a result of their defaulting on a $500 thousand payment o their secured $25 million long-term bond indenture, they probably will go to court to force bankruptcy proceedings. Midland Transmissions financial vice-president Gloria Knumbers, assures the company they could easily be able to sell $50 million of new common stock, since their financial condition is basically good. Old Dominion Bank and Bonds has agreed that if Midland and Transmissions could raise $50 million by…arrow_forwardOm1. Please answer fastarrow_forwardPlease answer the ff:arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.