Consider a production process described by the following flowchart, on which theprocess time of each station is indicated.Station 1Station 2Station 310 min15 min20 minSuppose that the fixed cost for build the process is $15,000 (including the cost tobuild the facility, purchase of the machines, recruiting the operators, etc.). After theprocess is established, it is expected that it will operate at its capacity rate. Themarginal profit for each unit produced is $5 (revenue minus variable cost). What isthe break-even time in hours?

Given, a production process flowchart.Station Station Station The fixed cost for building the…

Answered: Consider a production process described…

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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Applications are scanned in a process with two resources. The first resource has a capacity of 0.38 applications per minute. The capacity of the second resource is 0.17 applications per minute. Demand for this process is 0.22 applications per minute. Instruction: Round your answer to three decimal places. What is the cycle time of this process (in seconds)? seconds
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A manager must whether to buy machine A or B. Machine costs are as follows: A $52,000 each; B $100,000 each Product forecast and processing times on the machines are as follows Processing Time per unit (minutes) Product Annual Demand A B 1 8,000 2 18,000 3 10,000 Assume that only purchasing costs are being considered. Which machine would have the lowest purchase cost and how many of that machine would be need? Machines operate 8 hours a day 250 days per year. The machines differ in hourly operation costs. The A machines have an hourly operating cost of $12 each and B machines have an hourly operating cost of $30 each. What is the operating cost per year and which alternative should be selected to minimize total cost (for the first year) while satisfying the processing requirements? Edit Format Table 12pt v Paragraph v BIUA ev T?v||: MacBook Air esc 80 888 DII F1 F2 F3 F4 F5 F6 F7 FR @ # $ % 1 2 3 4 5 7 8. Q W E R T Y A S D F G < CO
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Station 1 Machine A 20 min/unit Station 1 Machine B 20 min/unit Station 2 12 min/unit Station 3 8 min/unit A three station work cell is illustrated in the image above. A unit needs to be processed at either Machine A or Machine B for Station 1 (parallel lines, both lines doing the exact same thing). The unit is then processed at Stations 2 and 3 before leaving the work cell. The process time of each machine/station is indicated in the flowchart. What is the process time of this system measured in minutes/unit?

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