A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost $50,000 A B $40,000 C $70,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Annual Product Demand 1 2 3 4 18,000 25,000 15,000 9,000 A B C A 1 5 4 5 B 6 Click here for the Excel Data File 5 3 1 Total processing time in minutes per machine: a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 220 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.) C 2 1 2 6
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost $50,000 A B $40,000 C $70,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Annual Product Demand 1 2 3 4 18,000 25,000 15,000 9,000 A B C A 1 5 4 5 B 6 Click here for the Excel Data File 5 3 1 Total processing time in minutes per machine: a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 220 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.) C 2 1 2 6
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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
Transcribed Image Text:A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:
Machine
Cost
$50,000
A
B
$40,000
C
$70,000
Product forecasts and processing times on the machines are as follows:
PROCCESSING TIME PER
UNIT (minutes)
Annual
Product Demand
1
2
3
4
18,000
25,000
15,000
9,000
A
1
5
4
5
A
B
C
B
Click here for the Excel Data File
6531
Total processing
time in minutes
per machine:
a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to
meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The
machines will operate 8 hours a day, 220 days a year. (Enter total processing times as whole numbers. Round up machine
quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the
resulting total purchasing cost as a whole number.)
C
2
1
2
6
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