Sheldon industries Industries manufactures plastic bottles for the food industry On average pays $ 73 per ton for its plastics Sheldon'sSheldon's waste disposal company has increased its waste disposal charge to $ 50$50 per ton for solid and inert waste SheldonSheldon generates a total of 500 tons of waste per month Sheldon'sSheldon'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, Sheldon has discarded the machine drool In an average month, 170 tons of machine drool is generated Management has arrived at three possible courses of action for the machine drool issue LOADING (Click the icon to view the courses of action )Read the requirements LOADING Requirement 1 What is the annual cost of the machine drool currently Include both the original plastic cost and the waste disposal cost Annual cost Material cost of machine drool (plastic) Disposal cost Total annual cost Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check Answer More Info 1 Do nothing and pay the increased waste disposal charge 2 Sell the machine drool waste to a local recycler for $10 per ton 3 Re engineer the production process at an annual cost of $40,000 This change in the production process would cause the amount of machine drool generated to be reduced by 40 each month The remaining machine drool would then be sold to a local recycler for $10 per ton Requirements 1 What is the annual cost of the machine drool currently Include both the original plastic 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 re engineered 4 What do you think the company should do Explain your rationale

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Sheldon industries Industries manufactures plastic bottles for the food industry. On average pays $ 73 per ton for its plastics. Sheldon'sSheldon's waste-disposal company has increased

Sheldon industries Industries manufactures plastic bottles for the food industry. On average pays

$ 73

per ton for its plastics.

Sheldon'sSheldon's

waste-disposal company has increased its waste disposal-charge to

$ 50$50

per ton for solid and inert waste.

SheldonSheldon

generates a total of

500

tons of waste per month.

Sheldon'sSheldon'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,

Sheldon

has discarded the machine drool. In an average month,

170

tons of machine drool is generated. 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 plastic cost and the waste-disposal cost.

	Annual cost
Material cost of machine drool (plastic)
Disposal cost
Total annual cost

Enter any number in the edit fields and then click Check Answer.

parts remaining

Clear All

Check Answer

More Info

Do nothing and pay the increased waste-disposal charge.

Sell the machine drool waste to a local recycler for

$10

per ton.

Re-engineer the production process at an annual cost of

$40,000.

This change in the production process would cause the amount of machine drool generated to be reduced by

40%

each month. The remaining machine drool would then be sold to a local recycler for

$10

per ton.

Requirements

1.	What is the annual cost of the machine drool currently? Include both the original plastic 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 re-engineered?
4.	What do you think the company should do? Explain your rationale.