A manager must decide which type of equipment to buy, Type A or Type B. Type A equipment cost $15,000 each, and Type B cost $11,000 each. The equipment can be operated 8 hours a day, 250 days a year. Either machine can be used to perfom two types of chemical analysis, C1 and C2. Annual service requirements and processing times are shown in the following table. Which type of equipment should be purchased, and how many of that type wil be need? The goal is to minimize total purchase cost. processing time per analysis (hr) Analysis type Annual volume A B C1 1200 1 2 C2 900 3 2
A manager must decide which type of equipment to buy, Type A or Type B. Type A equipment cost $15,000 each, and Type B cost $11,000 each. The equipment can be operated 8 hours a day, 250 days a year. Either machine can be used to perfom two types of chemical analysis, C1 and C2. Annual service requirements and processing times are shown in the following table. Which type of equipment should be purchased, and how many of that type wil be need? The goal is to minimize total purchase cost.
processing time per
analysis (hr)
Analysis type Annual volume A B
C1 1200 1 2
C2 900 3 2
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