Company Z has the following historical information about sales for one of its hydraulic pump models for the last 4 years: (PICTURE OF THE PERIOD AND YEARS) On the other hand, the manufacturing process used by Company Z is sequential* and has the following characteristics: (THE OTHER IMAGE) * Sequential; in the sense that the output of Mi is the input of Mi+1. ** In any order; in the sense that they can be interchanged, e.g. MA -> MB or MB -> MA. The company's operating costs are as follows: Cost per final unit produced "defect free": $100 Cost per final unit produced "with defects": $150 Cost per excess inventory (units "free of defects"): $50 Cost per inventory shortage ("defect free" units): $200 Revenue per final "defect free" unit produced and sold: $250 We have the following operating conditions: - Any sequence of 3 machines can be used. - Only one machine can be used once, within the same sequence of machines. - You can work UP TO 720 hours per month. - A "level production" type production strategy is followed. ------------------------------------------------------------------------------------- Establish the 1st and 2nd best machine sequence that allows company Z to obtain higher profits (profit = total revenue - total costs) for a hypothetical 5th year.
Heat Exchangers
Heat exchangers are the types of equipment that are primarily employed to transfer the thermal energy from one fluid to another, provided that one of the fluids should be at a higher thermal energy content than the other fluid.
Heat Exchanger
The heat exchanger is a combination of two words ''Heat'' and ''Exchanger''. It is a mechanical device that is used to exchange heat energy between two fluids.
Company Z has the following historical information about sales for one of its hydraulic pump models for the last 4 years:
(PICTURE OF THE PERIOD AND YEARS)
On the other hand, the manufacturing process used by Company Z is sequential* and has the following characteristics:
(THE OTHER IMAGE)
* Sequential; in the sense that the output of Mi is the input of Mi+1.
** In any order; in the sense that they can be interchanged, e.g. MA -> MB or MB -> MA.
The company's operating costs are as follows:
Cost per final unit produced "defect free": $100
Cost per final unit produced "with defects": $150
Cost per excess inventory (units "free of defects"): $50
Cost per inventory shortage ("defect free" units): $200
Revenue per final "defect free" unit produced and sold: $250
We have the following operating conditions:
- Any sequence of 3 machines can be used.
- Only one machine can be used once, within the same sequence of machines.
- You can work UP TO 720 hours per month.
- A "level production" type production strategy is followed.
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Establish the 1st and 2nd best machine sequence that allows company Z to obtain higher profits (profit = total revenue - total costs) for a hypothetical 5th year.
In both cases PROVE that both sequences meet the requirements of being the 1st and 2nd best sequences.
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