MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 15, Problem 10P
Summary Introduction
Interpretation: On the condition that there will be 10,000 phones shipped each month, the difference between monthly shipping charges each month is to be calculated.
Concept Introduction: The Company has decided to incorporate the packaging of its phones in a much smaller and recyclable package. Further, the company has also decided to stop its shipping practices along with a user manual because it decided to make the manual available online.
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A Southern Georgia school district is considering ordering 58 propane-fueled school buses. "They're healthier, they're cleaner burning, and they're much quieter than the diesel option," said a school administrator. Propane-powered buses also reduce greenhouse gasses by 25% compared to gasoline-powered buses and 8% compared to diesel ones. But they come at a premium—$97,000 for a propane model, $17,000more than the diesel equivalent.
The propane bus operating cost (above and beyond fuel cost) is 40 cents/mile, compared to 49cents for the diesel. Diesel fuel costs about $4/gallon in Georgia, about $1 more than propane. Bus mileage is
9 mpg for the propane model vs. 7 mpg for diesel. The life of a school bus in the district averages
10 years, and each bus travels an average of 34,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis?
Use the obtained value to calculate the total cost of using…
A Southern Georgia school district is considering ordering
57 propane-fueled school buses. "They're healthier, they're cleaner burning, and they're much quieter than the diesel option," said a school administrator. Propane-powered buses also reduce greenhouse gasses by
24% compared to gasoline-powered buses and
7% compared to diesel ones. But they come at a premium—$105,000
for a propane model,
$10,000
more than the diesel equivalent.
The propane bus operating cost (above and beyond fuel cost) is
35 cents/mile, compared to
45 cents for the diesel. Diesel fuel costs about
$4/gallon
in Georgia, about $1 more than propane. Bus mileage is
9 mpg for the propane model vs.
8 mpg for diesel. The life of a school bus in the district averages
11 years, and each bus travels an average of
37,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis?
Calculate the fuel cost for the propane-fueled bus.
Use…
Chapter 15 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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