Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Read below Abrasive Corp. (Use this information for the next 6 questions) Abrasives Corp. manufactures industrial diamonds for use in the cutting, machining and drilling

Read below

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Abrasive Corp. (Use this information for the next 6 questions) Abrasives Corp. manufactures industrial diamonds for use in the cutting, machining and drilling industries. They produce the highest quality diamonds in the industry, and can sell any amount they can produce for $5 per carat. Abrasive Corp runs 24 hours per day, 7 days per week. Abrasive Corp.'s production process has six steps: phite Core Manufacturing: There are two machines, each capable of producing 14 cores per hour. Ceramic Tube Manufacturing: There are three machines, each capable of producing 16 tubes per hour. Ceramic End Cap Manufacturing: There are four machines, each capable of producing 20 end caps per hour. Cell Assembly. A complete cell is produced by placing the graphite core in the ceramic tube and closing each end of the ceramic tube using an end cap, i.e., two end caps in total per cell. One person can assemble a cell in 3 minutes. There are 2 people working in cell assembly. Pressing. Each cell is placed in a single machine, where it is subjected to high pressures and temperatures. Each cell produces 50 carats of diamond. A machine can process one cell per hour. There are 22 pressing machines. gparation. The diamonds produced during pressing need to be separated from the graphite. This requires a special chemical treatment in a reactor. A reactor (a type of machine) processes the cells in batches of 100. It takes 35 seconds per cell to load the reactor. Regardless of how many cells are processed, the reactor must be run for 8 hours after being loaded. At that point, the reactor is unloaded. It takes 20 seconds per cell to unload the reactor. There are two reactors. What is the capacity of Core Manufacturing (in carats per hour)? 0 100 carat/hr O 1400 carats/hr O 1000 carats/hr O 700 carats/hr What is the capacity of Ceramic Tube Manufacturing (in carats per hour)? 0 2400 carats/ hr 0 150 carats/hr O 1600 carats/hr O 3200 carats/hr What is the capacity of Cell assembly (in carats per hour)? 0 4000 carats/hr O 1000 carats/hr O 3000 carats/hr O 2000 ca rats/hr What is the capacity of Pressing (in carats per hour)? 0 2200 carats/hr O 1100 carats/hr O 3000 carats/hr O 1000 carats/hr What is the capacity of Separation (in carats per hour)? 0 1049.56 carats/hr 0 None of these 0 1000 carats/hr 0 1032.35 carats/ hr There are two alternative reactor technologies that Abrasives Corp. could also use. These alternative reactor technologies both have faster load/unload times. {The run time is 8 hours for these technologies, and both technologies use a batch size of 100 cells). Technology A: This type of reactor costs $500,000 but can do the loading in 25 seconds per cell and the unloading in 13 seconds per cell. Technology B: This type of reactor costs $550,000 but can do the loading in 15 seconds per cell and the unloading in 5 seconds per cell. Abrasives Corp can dispose of current reactors at no cost. What investments would you make in new reactors? O 1 current + 1 B type 0 1Atype + 1 B type 0 1 current + 2 A types 0 2 A types + 2 B types

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to the Mathematics of Financial Derivatives

Authors: Ali Hirsa, Salih N. Neftci

3rd edition

012384682X, 978-0123846822

More Books

Students also viewed these Mathematics questions