Use the following information for the next 3 questions: A product is to take 30 hours to be delivered to a customer and shipping costs are $2700.  If the product is 8 hours or more late, the penalty is $500.  Shipping costs decline at a rate of $50 for each additional hour of transit time allowed. 1. What is the optimal delivery time (y) that will minimize costs?  - 33.2 hours - 31.2 hours - 32.2 hours - 30.2 hours - 34.2 hours - 35.2 hours   2. If the product is delivered in 34 hours, what is the Taguchi Loss Cost (L)? - $250 - $300 - $80 - $500 - $0 - $125 - $375   3. If the product is delivered in 36 hours, what is the Total Cost (Taguchi Loss Cost plus Process Cost)? - $2,700 - $2,681.25 - $2,400 - $2,396.75 - $2,250.30 - $2,543.50

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Use the following information for the next 3 questions:

A product is to take 30 hours to be delivered to a customer and shipping costs are $2700.  If the product is 8 hours or more late, the penalty is $500.  Shipping costs decline at a rate of $50 for each additional hour of transit time allowed.

1. What is the optimal delivery time (y) that will minimize costs? 

- 33.2 hours
- 31.2 hours
- 32.2 hours
- 30.2 hours
- 34.2 hours
- 35.2 hours
 
2. If the product is delivered in 34 hours, what is the Taguchi Loss Cost (L)?

- $250
- $300
- $80
- $500
- $0
- $125
- $375
 
3. If the product is delivered in 36 hours, what is the Total Cost (Taguchi Loss Cost plus Process Cost)?

- $2,700
- $2,681.25
- $2,400
- $2,396.75
- $2,250.30
- $2,543.50
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