A manager must decide which type of machine to buy, A, B, or C.
Machine costs (per individual machine) are as follows:
Product forecasts and processing times on the machines are as
follows:
Click here for the Excel Data File
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. 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.)
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: P
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