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Please solve 7 (not 6!) 6. A one-product plant will operate 250 days per year using a single 8-hour shift each day. Sales requirements are
Please solve 7 (not 6!)
6. A one-product plant will operate 250 days per year using a single 8-hour shift each day. Sales requirements are 100,000 units per year. The product consists of two major components: A and B (one of each component goes into each unit of product). The operations required to produce each component are given in the table below, as are the associated standard time and scrap rates. Proportion uptime is expected to be 90% during each 8-hour shift. Determine how many machines are required of each type, assuming that a product layout will be used. Therefore, no machine will be shared between operations, thus eliminating the need for setup changes. (35pt) 7. For the previous problem, assume that the service life of all the machines is 15 years and the salvage value is 10% of the purchase cost. Calculate annual cost of these machines using the straight-line technique to calculate depreciation. The following table provides initial costs of each machine. In addition, calculate unit costs of the components A and B based on annual costs of the equipment used to manufacture each component. (15pt) Step by Step Solution
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