Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 5.S, Problem 8P
Summary Introduction

To determine: The payback period for the breakeven mileage for hybrid and alternative vehicle from competing automobile manufacturer.

Introduction: Payback period is the time duration needed to recover the investment costs. The payback period is an important factor to decide whether to undertake particular project or position. The longer payback periods are not desirable for investment positions.

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Klassen Toy Company, Inc., assembles two parts (parts 1 and 2): Part 1 is first processed at workstation A for 10 minutes per unit and then processed at workstation B for 20 minutes per unit. Part 2 is simultaneously processed at workstation C for 12 minutes per unit. Work stations B and C feed the parts to an assembler at workstation D, where the two parts are assembled. The time at workstation D is 15 minutes. a) The bottleneck of this process is at minutes per unit (enter your response as a whole number).
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