A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product Annual Demand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs 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 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs 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 208,000 Numeric ResponseEdit Unavailable.208,000correct. B 210,000 Numeric ResponseEdit Unavailable.210,000correct. C 232,000 Numeric ResponseEdit Unavailable.232,000correct. Number of each machine needed and total purchasing cost A 1.5 Numeric ResponseEdit Unavailable.1.5correct. $ 90,000 Numeric ResponseEdit Unavailable.90,000incorrect. B 1.5 Numeric ResponseEdit Unavailable.1.5correct. $ 75,000 Numeric ResponseEdit Unavailable.75,000incorrect. C 2 Numeric ResponseEdit Unavailable.2correct. $ 120,000 Numeric ResponseEdit Unavailable.120,000correct. b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product Annual Demand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs 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 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs 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 208,000 Numeric ResponseEdit Unavailable.208,000correct. B 210,000 Numeric ResponseEdit Unavailable.210,000correct. C 232,000 Numeric ResponseEdit Unavailable.232,000correct. Number of each machine needed and total purchasing cost A 1.5 Numeric ResponseEdit Unavailable.1.5correct. $ 90,000 Numeric ResponseEdit Unavailable.90,000incorrect. B 1.5 Numeric ResponseEdit Unavailable.1.5correct. $ 75,000 Numeric ResponseEdit Unavailable.75,000incorrect. C 2 Numeric ResponseEdit Unavailable.2correct. $ 120,000 Numeric ResponseEdit Unavailable.120,000correct. b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

See similar textbooks

Related questions

Concept explainers

Question

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:

Machine	Cost
A	$	60,000
B	$	50,000
C	$	60,000

Product forecasts and processing times on the machines are as follows:

		PROCCESSING TIME PER UNIT (minutes)
Product	Annual Demand	A	B	C
1	16,000	3	4	4
2	10,000	6	5	1
3	15,000	1	3	6
4	17,000	5	3	4

a. Assume that only purchasing costs 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 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs 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	208,000 Numeric ResponseEdit Unavailable.208,000correct.
B	210,000 Numeric ResponseEdit Unavailable.210,000correct.
C	232,000 Numeric ResponseEdit Unavailable.232,000correct.

Number of each machine needed and total purchasing cost
A	1.5 Numeric ResponseEdit Unavailable.1.5correct.	$ 90,000 Numeric ResponseEdit Unavailable.90,000incorrect.
B	1.5 Numeric ResponseEdit Unavailable.1.5correct.	$ 75,000 Numeric ResponseEdit Unavailable.75,000incorrect.
C	2 Numeric ResponseEdit Unavailable.2correct.	$ 120,000 Numeric ResponseEdit Unavailable.120,000correct.

b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)

Total cost for each machine
A	131,467 Numeric ResponseEdit Unavailable.131,467incorrect.
B	125,417 Numeric ResponseEdit Unavailable.125,417incorrect.
C	158,667 Numeric ResponseEdit Unavailable.158,667correct.

Pre

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.