EXAMPLE 2-10 Choosing the Better Process Process A produces 1,000 defect-free parts per hour. After every 2 hours, the equipment must be adjusted. This adjustment takes 15 minutes. The machine operator, who also makes the adjustment, is paid $25 per hour (this includes fringe benefits). Process B produces 750 defect-free parts per hour. The equipment needs to be adjusted by the operator every 4 hours. This adjustment requires 10 minutes of the operator's time (paid at $15 per hour which includes fringe benefits). Both processes are operated 8 hours a day. If ench defect-free part can be sold for $0.10, which process should be selected? Be sure to list your key assumptions.
EXAMPLE 2-10 Choosing the Better Process Process A produces 1,000 defect-free parts per hour. After every 2 hours, the equipment must be adjusted. This adjustment takes 15 minutes. The machine operator, who also makes the adjustment, is paid $25 per hour (this includes fringe benefits). Process B produces 750 defect-free parts per hour. The equipment needs to be adjusted by the operator every 4 hours. This adjustment requires 10 minutes of the operator's time (paid at $15 per hour which includes fringe benefits). Both processes are operated 8 hours a day. If ench defect-free part can be sold for $0.10, which process should be selected? Be sure to list your key assumptions.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Transcribed Image Text:EXAMPLE 2-10
Choosing the Better Process
Process A produces 1,000 defect-free parts per hour. After every 2 hours, the
equipment must be adjusted. This adjustment takes 15 minutes. The machine
operator, who also makes the adjustment, is paid $25 per hour (this includes fringe
benefits).
Process B produces 750 defect-free parts per hour. The equipment needs to be
adjusted by the operator every 4 hours. This adjustment requires 10 minutes of the
operator's time (paid at $15 per hour which includes fringe benefits). Both processes
are operated 8 hours a day.
If erch defect-free part can be sold for $0.10, which process should be selected?
Be sure 'tS list your key assumptions.
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