Answer:
The question is incomplete.
Explanation:
The question is incomplete, please refer below the complete 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 $40,000
B $30,000
C $80,000
Product forecasts and processing times on the machines are as follows:
Product Annual Demand Processing time per unit (minutes)
A B C
1 16,000 3 4 2
2 12,000 4 4 3
3 6,000 5 6 4
4 30,000 2 2 1
Assume that only the purchasing cost is 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 8 hours a day, 200 days a year.
Total Processing Time in Minutes per Machine
Number of each machine needed and total purchasing cost
Answer:
Total Processing Time in Minutes per Machine
Total time = Total demand for each product * Processing time
Machine A:
(16
,
000 ∗ 3
) + (12
,
000 ∗ 4) + (6
,
000 ∗ 5) + (
30
,
000 ∗ 2) = $
186
,
000
Machine B:
(16
,
000 ∗ 4) + (12
,
000 ∗ 4) + (6
,
000 ∗ 6) + (30
,
000 ∗ 2) = $
208
,
000
Machine C:
(16
,
000 ∗ 2) + (12
,
000 ∗ 3) + (6
,
000 ∗ 4) + (30
,
000 ∗ 1) = $
122
,
000
Number of machines needed and total purchasing cost
Number of machine = Total processing time / Time available
Time available = Number of days * Hours per day * 60
Machine A:
Number of machine = 186
,
000 / (200 ∗ 8 ∗ 60)
Number of machine = 2 (Round off)
Machine B:
Number of machine = 208
,
000 / (200 ∗ 8 ∗ 60)
Number of machine = 2 (Round off)
Machine C:
Number of machine = 122
,
000 / (200 ∗ 8 ∗ 60)
Number of machine = 1 (Round off)
Machine cost:
Machine cost = Cost per machine * Number of machines
Machine A:
2 ∗ $
40
,
000 = $
80
,
000
Machine B:
2 ∗ $
30
,
000 = $
60
,
000
Machine C:
1 ∗ $
80
,
000 = $
80
,
000
