A manager must decide which type of machine to buy, A,B, or C. Machine costs (per individual machine) are asfollows:Machine CostABCProduct forecasts and processing times on the machinesare as follows:$80,000$70,000$40,000AnnualProduct Demand125,000222,000320,00049,000ABPROCCESSING TIME PERUNIT (minutes)ABCA5335B411Click here for the Excel Data FileTotal processingtime in minutesper machine:296,000196,0006a. Assume that only purchasing costs are beingconsidered. Compute the total processing time requiredfor each machine type to meet demand, how many of eachmachine type would be needed, and the resulting totalpurchasing cost for each machine type. The machines willoperate 10 hours a day, 250 days a year. (Enter totalprocessing times as whole numbers. Round up machinequantities to the next higher whole number. Computetotal purchasing costs using these rounded machinequantities. Enter the resulting total purchasing cost as awhole number.)с242 $262Number of each machine needed andtotal purchasing cost160,000

Product forecasting also known as sales forecasting is the process of forecasting future demand for…

Answered: A manager must decide which type of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

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A manager must whether to buy machine A or B. Machine costs are as follows: A $52,000 each; B $100,000 each Product forecast and processing times on the machines are as follows Processing Time per unit (minutes) Product Annual Demand A B 1 8,000 2 18,000 3 10,000 Assume that only purchasing costs are being considered. Which machine would have the lowest purchase cost and how many of that machine would be need? Machines operate 8 hours a day 250 days per year. The machines differ in hourly operation costs. The A machines have an hourly operating cost of $12 each and B machines have an hourly operating cost of $30 each. What is the operating cost per year and which alternative should be selected to minimize total cost (for the first year) while satisfying the processing requirements? Edit Format Table 12pt v Paragraph v BIUA ev T?v||: MacBook Air esc 80 888 DII F1 F2 F3 F4 F5 F6 F7 FR @ # $ % 1 2 3 4 5 7 8. Q W E R T Y A S D F G < CO
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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: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 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 10 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. Omit the "$" sign.) Total…
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