Homew Part 1 of 4 O Points: 0 of 5 Save Sandler Industries manufactures plastic bottles for the food industry. (Click the icon to view additional information.) Management has arrived at three possible courses of action for the machine drool issue: (Click the icon to view the courses of action.) Read the requirements More info More info 1. Do nothing and pay the increased waste disposal charge. 2. Sell the machine drool waste to a local recycler for $15 per ton. 3. Reengineer the production process at an annual cost of $45,000. This change in the production process would reduce the amount of machine drool generated by 50% each month. The remaining machine drool would then be sold to a local recycler for $15 per ton. On average, Sandler pays $72 per ton for its plastics. Sandler's waste-disposal company has increased its waste disposal charge to $59 per ton for solid and inert waste. Sandler generates a total of 500 tons of waste per month. The company's managers have been evaluating the production processes for areas to cut waste. In the process of making plastic bottles, a certain amount of machine "drool" occurs. Machine drool is the excess plastic that 'drips' off the machine between molds. In the past, Sandler has discarded the machine drool. In an average month, 200 tons of machine drool are generated. Print Done Print Done Sandler Industries manufactures plastic bottles for the food industry (Click the icon to view additional information.) Management has arrived at three possible courses of action for the machine drool issue: Click the icon to view the courses of action.) Read the requirements Requirement 1. What is the annual cost of the machine drool currently? Include both the original plastics cost and the waste disposal cost. Annual cost Material cost of machine drool (plastic) X Requirements Disposal cost Total annual cost 1. What is the annual cost of the machine drool currently? Include both the original plastics cost and the waste disposal cost 2. How much would the company save per year (net) if the machine drool were to be sold to the local recycler? 3. How much would the company save per year (net) if the production process were to be reengineered? 4. What do you think the company should do? Explain your rationale, Print Done Homew Part 1 of 4 O Points: 0 of 5 Save Sandler Industries manufactures plastic bottles for the food industry. (Click the icon to view additional information.) Management has arrived at three possible courses of action for the machine drool issue: (Click the icon to view the courses of action.) Read the requirements More info More info 1. Do nothing and pay the increased waste disposal charge. 2. Sell the machine drool waste to a local recycler for $15 per ton. 3. Reengineer the production process at an annual cost of $45,000. This change in the production process would reduce the amount of machine drool generated by 50% each month. The remaining machine drool would then be sold to a local recycler for $15 per ton. On average, Sandler pays $72 per ton for its plastics. Sandler's waste-disposal company has increased its waste disposal charge to $59 per ton for solid and inert waste. Sandler generates a total of 500 tons of waste per month. The company's managers have been evaluating the production processes for areas to cut waste. In the process of making plastic bottles, a certain amount of machine "drool" occurs. Machine drool is the excess plastic that 'drips' off the machine between molds. In the past, Sandler has discarded the machine drool. In an average month, 200 tons of machine drool are generated. Print Done Print Done Sandler Industries manufactures plastic bottles for the food industry (Click the icon to view additional information.) Management has arrived at three possible courses of action for the machine drool issue: Click the icon to view the courses of action.) Read the requirements Requirement 1. What is the annual cost of the machine drool currently? Include both the original plastics cost and the waste disposal cost. Annual cost Material cost of machine drool (plastic) X Requirements Disposal cost Total annual cost 1. What is the annual cost of the machine drool currently? Include both the original plastics cost and the waste disposal cost 2. How much would the company save per year (net) if the machine drool were to be sold to the local recycler? 3. How much would the company save per year (net) if the production process were to be reengineered? 4. What do you think the company should do? Explain your rationale, Print Done
