Question
Number of each machine needed and total purchasing cost A B. C. b.Consider this additional information: The machines differ in terms of hourly operating costs:
Number of each machine needed and total purchasing cost A B. C. b.Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $10 each, B machines have an hourly operating cost of $10 each, and C machines have an hourly operating cost of $12 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.) Total cost for each machine A. B. C. Buy.
S A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine A B C Product forecasts and processing times on the machines are as follows: Cost $70,000 $60,000 $50,000 Annual Product Demand 1 5,000 2 13,000 3 23,000 8,000 4 PROCCESSING TIME PER UNIT (minutes) A B C A 242ND B33LS 1 Click here for the Excel Data File Total processing time in minutes per machine: 5 C 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, 220 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.) 2316
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SOLUTION To compute the total processing time required for each machine type and determine the number of each machine needed we need to calculate the ...Get Instant Access to Expert-Tailored Solutions
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