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For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 1.400 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 20 minutes. The machine operator for Operation 1 is paid $17 per hour (this includes fringe benefits). Operation 2 produces 1,050 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 30 minutes The machine operator for Operation 2 is paid $11 per hour (this includes fringe benefits) Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.25 each a. Should Operation 1 or Operation 2 be recommended? b. What is the basic tradeoff in this problem?

For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 1.400 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 20 minutes. The machine operator for Operation 1 is paid $17 per hour (this includes fringe benefits). Operation 2 produces 1,050 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 30 minutes The machine operator for Operation 2 is paid $11 per hour (this includes fringe benefits) Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.25 each a. Should Operation 1 or Operation 2 be recommended? b. What is the basic tradeoff in this problem?

Practical Management Science
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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For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 1,400 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 20 minutes. The machine operator for Operation 1 is paid $17 per hour (this includes fringe benefits). Operation 2 produces 1,050 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 30 minutes. The machine operator for Operation 2 is paid $11 per hour (this includes fringe benefits) Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.25 each a. Should Operation 1 or Operation 2 be recommended? b. What is the basic tradeoff in this problem? SAL a. The profit using Operation 1 is $ 1,964 per day (Round to the nearest dollar) The profit using Operation 2 is $ 1,592 per day (Round to the nearest dollar) Operation 1 should be chosen. b. Choose the correct answer below AA higher production for Operation 2 is being traded off for a higher tool changing time (downtime) B. A higher production for Operation 2 is being traded off for a lower tool changing time (downtime). A higher production for Operation 1 is being traded off for a higher tool changing time (downtime) D. A higher production for Operation 1 is being traded off for a lower tool changing time (downtime)
Transcribed Image Text:For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 1,400 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 20 minutes. The machine operator for Operation 1 is paid $17 per hour (this includes fringe benefits). Operation 2 produces 1,050 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 30 minutes. The machine operator for Operation 2 is paid $11 per hour (this includes fringe benefits) Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.25 each a. Should Operation 1 or Operation 2 be recommended? b. What is the basic tradeoff in this problem? SAL a. The profit using Operation 1 is $ 1,964 per day (Round to the nearest dollar) The profit using Operation 2 is $ 1,592 per day (Round to the nearest dollar) Operation 1 should be chosen. b. Choose the correct answer below AA higher production for Operation 2 is being traded off for a higher tool changing time (downtime) B. A higher production for Operation 2 is being traded off for a lower tool changing time (downtime). A higher production for Operation 1 is being traded off for a higher tool changing time (downtime) D. A higher production for Operation 1 is being traded off for a lower tool changing time (downtime)
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