EBK OPERATIONS MANAGEMENT
13th Edition
ISBN: 8220103675987
Author: Stevenson
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4.S, Problem 21P
A manager must decide between two machines. The manager will take into account each machine’s operating costs and initial costs, and its breakdown and repair times. Machine A has a projected average operating tune of 142 hours and a projected average repair time of 7 hours. Projected tunes for machine B are an average operating tune of 65 hours and a repair time of 2 hoots. What are the projected availabilities of each machine?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A manager must decide between two machines. The manager will take into account each machine's operating costs and initial costs, and its breakdown and repair times. Machine A has a projected average operating time of 140 hours and a projected average repair time of 7 hours. Projected times for machine B are an average operating time of 70 hours and a repair time of 6 hours. What are the projected availabilities of each machine? (Round your answer to 3 decimal places). I don't want the answer. I just want to know HOW to do it.
. A manager must decide between two machines. The manager will take into account each machine’s operating costs and initial costs, and its breakdown and repair times. Machine A has a projected average operating time of 142 hours and a projected average repair time of 7 hours. Projected times for machine B are an average operating time of 65 hours and a repair time of 2 hours. What are the projected availabilities of each machine?
A 3 year-old a computer-controlled fabric cutting machine, which had a $25,000
purchasing price, has a current market (trade-in) value of $10,000 and expected
O&M costs of $4,000, increasing by 1,000 per year. The machine is required to have
an immediate repair that costs $2,000. The estimated market values are expected to
decline by 20% annually (going forward). The machine can be used for another 7
years at most. The new machine has a $40,000 purchasing price. The new machine's
O&M cost is estimated to be $4,000 for the first year, decreasing at an annual rate of
$100 thereafter. The firm's MARR is 10%. Assume a unique minimum AEC(10%) for
both machines (both the current and replacement machine).
Using the information above, determine the economic service life along with the
optimum annual equivalent cost of the defender (This is an infinite Horizon decision
problem).
a) n=4 and AEC=Between $8,400 and $8,800
b) n=4 and AEC=Between $8,000 and $8,400
c) n=5 and AEC=Between $8,400 and…
Chapter 4 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 4.4 - Prob. 1.1RQCh. 4.4 - Prob. 1.2RQCh. 4.8 - LEGO A/S IN THE PINK Lego A/S overcame the recent...Ch. 4.8 - Prob. 2.1RQCh. 4.8 - Prob. 2.2RQCh. 4.11 - THE CHALLENGES OF MANAGING SERVICES Services can...Ch. 4.11 - THE CHALLENGES OF MANAGING SERVICES Services can...Ch. 4.S - Prob. 1DRQCh. 4.S - Prob. 2DRQCh. 4.S - Prob. 3DRQ
Ch. 4.S - Consider the following system: Determine the...Ch. 4.S - A product is composed of four parts. In order for...Ch. 4.S - A system consists of three identical components....Ch. 4.S - A product engineer has developed the following...Ch. 4.S - The guidance system of a ship is controlled by a...Ch. 4.S - One of the industrial robots designed by a leading...Ch. 4.S - A production line has three machines A, B, and C,...Ch. 4.S - Prob. 8PCh. 4.S - A Web server has five major components that must...Ch. 4.S - Repeat Problem 9 under the condition that one of...Ch. 4.S - Hoping to increase the chances of reaching a...Ch. 4.S - An electronic chess game has a useful life that is...Ch. 4.S - A manufacturer of programmable calculators is...Ch. 4.S - Lucky Lumen light bulbs have an expected life that...Ch. 4.S - Prob. 15PCh. 4.S - Prob. 16PCh. 4.S - A major television manufacturer has determined...Ch. 4.S - Prob. 18PCh. 4.S - Determine the availability for each of these...Ch. 4.S - Prob. 20PCh. 4.S - A manager must decide between two machines. The...Ch. 4.S - Prob. 22PCh. 4.S - Auto batteries have an average life of 2.7 years....Ch. 4 - Prob. 1DRQCh. 4 - Prob. 2DRQCh. 4 - Prob. 3DRQCh. 4 - Prob. 4DRQCh. 4 - Prob. 5DRQCh. 4 - Prob. 6DRQCh. 4 - Prob. 7DRQCh. 4 - Prob. 8DRQCh. 4 - a. What is meant by the term life cycle? b. Why...Ch. 4 - Prob. 10DRQCh. 4 - Prob. 11DRQCh. 4 - Prob. 12DRQCh. 4 - Prob. 13DRQCh. 4 - Explain what quality function development is and...Ch. 4 - Prob. 15DRQCh. 4 - Prob. 16DRQCh. 4 - Prob. 17DRQCh. 4 - Prob. 18DRQCh. 4 - Prob. 19DRQCh. 4 - Describe some of the trade-off that are...Ch. 4 - Prob. 2TSCh. 4 - Prob. 3TSCh. 4 - Prob. 1CTECh. 4 - Prob. 2CTECh. 4 - Prob. 3CTECh. 4 - Prob. 4CTECh. 4 - Prob. 5CTECh. 4 - Give two examples of unethical conduct involving...Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prepare a service blueprint for each of these...Ch. 4 - Prepare a service blueprint for each of these post...Ch. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prepare a table similar to that shown in Problem...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Derek is disappointed in his high-speed Internet service.Although the Internet is seldom down, it kicks into slowmode quite often, which Derek considers to be a failure.He has tried three service providers with varying degreesof success. The number of failures in a typical eight-hourday and the average time to regain high-speed service areshown below. Derek must choose one of the followingoptions. Calculate the system availability for each option.Which service would you recommend?arrow_forwardJobs arrive at Loaf Machine Shop. Assume the arrival rate is five jobs per hour. Service times (in minutes per job) do not follow the exponential probability distribution. Two proposed designs for Loaf Machine Shop operation are shown. Design Mean Standard Deviation A 6.0 3.0 B 6.25 0.6 What is the service rate in jobs per hour for each design? For the service rate in part (a), what design appears to provide the best or fastest service rate?arrow_forwardPLEASE ANSWER URGENTLY AND SHOW ALL CALCULATIONS QUESTION It takes a cycle of 12 minutes to mould 50 defect-free standard bricks plus 1 minute to adjust the machine for a brick-making machine operated by two machine operators paid R70/hr each. Another lower-capacity machine also takes 12 minutes to mould the bricks plus 36 seconds to adjust the machine, to produce 25 standard bricks operated by one operator paid R100 per hour. If both machines are operated 8 hours a day and a standard brick is sold at R2.00, determine which process should be selected?arrow_forward
- 1. Calculate the average customer arrival rate and service rate per hour. 2. Calculate the probability of zero patients in the system (P0), probability of one patient (P1), and probability of two or more patients simultaneously arriving during the night shift. 3. Using a criterion that if the probability is greater than 1 percent, a backup OR team should be employed, make a recommendation to hospital administration. I'm not sure how to find the answers to the empty boxes.arrow_forwardThe Avis Company is a car rental company and is located three miles from the Los Angeles airport (LAX). Avis is dispatching a bus from its offices to the airport every 2 minutes. The average traveling time (a round trip) is 20 minutes. How many Avis buses are traveling to and from the airport? The branch manager wants to improve the service and suggests dispatching buses every 0.5 minute. She argues that this will reduce the average traveling time (a round trip) to Avis’s offices to 2.5 minutes. Is she correct? If your answer is negative, then what will the average traveling time be?arrow_forwardMajestic Corporation provides call-center ordering services for Essential Oils magazine. Majestic receives an annual fee of $200,000 for providing such services and is also eligible to receive a performance bonus up to $65,000 if the average customer wait times are below certain thresholds at the end of the year. Using historical results as well as current expectations, Majestic estimates the chances of achieving the different performance bonuses as shown in the table here. Assume there are NO revenue constraints, and the entity uses the expected value approach to record variable consideration when recognizing revenue during the period. Which is the amount of the performance bonus management can recognize in the transaction price? Average wait times Performance Bonus % Chance of Achieving $65,000 15% < 1 minute < 2 minutes < 3 minutes < 4 minutes < 5 minutes $45,000 $25,000 $5,000 0 10% 50% 20% 5% a. Management would include the variable consideration in the transaction price in the…arrow_forward
- The roller coaster at Treasure Island Amusement Park consists of 20 cars, each of which can carry up to two passengers. According to a time study, each run takes 4.5 minutes, and the time to unload and load riders is 5.5 minutes. What is the theoretical capacity of the system in number of passengers per hour? Round your answer down to the nearest whole number. _________ passengers per hourarrow_forwardCompute the capacity (i.e. processing rate) for each of the following scenarios. Convertyour answers to parts per hour.a. A four-station line with single-machine stations, where the average processing timesare 15, 20, 10 and 12 minutes, respectively.b. A three-station line where the number of machines at stations 1, 2 and 3 is 2, 6, and3, respectively; and the average processing times are 10, 24 and 18 minutes,respectively.arrow_forwardCaine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $34,000. Management also believes that the new bottling machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 9%. Click here to view the factor table. Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to O decimal places, e.g. 125.) Net present value $ How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to O decimal places, e.g. 125.) $…arrow_forward
- Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 75 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, they the owners estimate they can serve on average about 100 customers per hour. Owners of the restaurant anticipates that, in one year their demand will double as long as they can provide good service to their customers. How much will they have to increase their service capacity to in order to stay out of the critical zone? (Roundup your answer to the next whole number.)arrow_forwardThe following data for 2021 are available for Canlubang AutomotiveCompany which manufactures and sells a single automotive product line.Unit selling price = 4Unit variable cost = 20Total fixed cost = 200,000a.) What is the break-even point in units for the current year?b.) Prepare a break-even chart for the operation in 2021 intervals of 5,000 units from 5,000to 30,000 units (show complete solution)arrow_forwardPendryl Office Supplies is evaluating the profitability of leasing a photocopier for its customers to use on a self serve basis at 10 cents/copy. The copier may be leased for $300 per month plus 1.5 cents per copy on a full service contract. Pendryl can purchase paper at $5 per 500 sheet ream. Toner costs $100 per bottle, which in normal use will last for 5000 pages. Pendryl thinks that there are additional other costs of 0.5 cents per copy. A. How many copies per month must be sold in order to break even? (6000 copies/month) B. What will be the increase in monthly profit for each 1000 copies sold above the break-even point? ($50 per month)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY