d. Calculate the rate of utilization of each option?e. Considering the information calculated, which option is best in your opinion? Is there a third option you could implement? A bakery needs to evaluate two oven solutions for its renovations. It is currently considering twopossible ovens, a small one for $1,250 and a large one for $2,500. Its operating requirements areas followsItemBatch size (units)Processing time (min/unit)Cleaning time (min)Heating time (min)Small Oven Large Oven1255010.520301015According to operating instructions, both the small and large ovens must be cleaned after eachbatch and properly heated before each batch can be processed. The bakery estimates the demandfor the next few years to remain steady at 300,000 units per year. Currently, the company operates8 hours a day (with no overtime allowed) and 300 days a year.

Answer d) Daily Production Capacity of oven = Total Time Producation time for each batch For small…

Answered: . Calculate the rate of utilization of…

. Calculate the rate of utilization of each option? e. Considering the information calculated, which option is best in your opinion? Is there a third option you could implement?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

d. Calculate the rate of utilization of each option?
e. Considering the information calculated, which option is best in your opinion? Is there a third option you could implement?

A bakery needs to evaluate two oven solutions for its renovations. It is currently considering two
possible ovens, a small one for $1,250 and a large one for $2,500. Its operating requirements are
as follows
Item
Batch size (units)
Processing time (min/unit)
Cleaning time (min)
Heating time (min)
Small Oven Large Oven
125
50
1
0.5
20
30
10
15
According to operating instructions, both the small and large ovens must be cleaned after each
batch and properly heated before each batch can be processed. The bakery estimates the demand
for the next few years to remain steady at 300,000 units per year. Currently, the company operates
8 hours a day (with no overtime allowed) and 300 days a year.

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