A manager must decide which type of machine to buy, A, B. or C. Machine costs (per individual machine) are as follows: C

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A Manager Must Decide Which Type Of Machine To Buy A B Or C Machine Costs Per Individual Machine Are As Follows C 1 (67.16 KiB) Viewed 9 times

A manager must decide which type of machine to buy, A, B. or C. Machine costs (per individual machine) are as follows: Cost $70,000 $60,000 $50,000 Machine: A B C Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Annual Product Demand 1 2 3 4 A B ABG C C Buy AB 11,000 24,000 26,000 22,000 ASSZH C Buy А 5 2 1 a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.) B 1 Total processing time in minutes per machine: 4646 6 4 с 2 2 5 3 b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $11 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand? (Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.) Total cost for each machine Number of each machine needed and total purchasing cost