An electric motor is used to power an assembly line. The motor runs continuously at various speeds and after a certain number of hours must be replaced. A food-processing company that usesmotors of this type is considering whether to purchase the motors from supplier A or supplier B. Information related to the different costs and useful life of the motors supplied by the two suppliersis as follows:Price per motorUseful life (hours)Energy cost per hourSupplier ASupplier B$900$975876$0.275730$0.295Assume that the food-processing company operates 365 days a year, 24 hours a day, for a total of 8,760 hours of operation annually. Conduct a total cost of ownership analysis for the motors.The total cost of ownership for Supplier A is $ ☐. (Enter your response rounded to the nearest whole number.)The total cost of ownership for Supplier B is $(Enter your response rounded to the nearest whole number.)Based on the total cost of ownership analysis, the best decision is to purchase

ParticularsSupplier ASupplier BTotal Numbers of Operations Annually (A)8,760 Hours8,760 HoursUseful…

Answered: An electric motor is used to power an…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Similar questions

Please select the correct order of operations from first to last in the procurement process: PAy for goods Reciee the invoice (3-way match) Create bill of material Recieve the goods Create the invoice Issue a quote Create the purchase order
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MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
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MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
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