Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 1,600 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 10 minutes. The machine operator for Operation 1 is paid $19 per hour (this includes fringe benefits). Operation 2 produces 1,850 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 30 minutes. The machine operator for Operation 2 is paid $11 per hour (this includes fringe benefits). Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.40 each. a. Should Operation 1 or Operation 2 be recommended? b. What is the basic tradeoff in this problem? a. The profit using Operation 1 is $ 4,237 per day. (Round to the nearest dollar.) The profit using Operation 2 is $ 4,648 per day. (Round to the nearest dollar.) Operation 2 should be chosen. b. Choose the correct answer below. A. A higher production for Operation 2 is being traded off for a higher tool changing time (downtime). B. A higher production for Operation 1 is being traded off for a lower tool changing time (downtime). OC. A higher production for Operation 2 is being traded off for a lower tool changing time (downtime). D. A higher production for Operation 1 is being traded off for a higher tool changing time (downtime).
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Transcribed Image Text:For the production of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Operation 1 produces 1,600 parts per hour. After each hour, the tooling must be adjusted by the machine operator. This adjustment takes 10 minutes. The machine operator for Operation 1 is paid $19 per hour (this includes fringe benefits). Operation 2 produces 1,850 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. This adjustment takes 30 minutes. The machine operator for Operation 2 is paid $11 per hour (this includes fringe benefits). Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.40 each. a. Should Operation 1 or Operation 2 be recommended? b. What is the basic tradeoff in this problem? a. The profit using Operation 1 is $ 4,237 per day. (Round to the nearest dollar.) The profit using Operation 2 is $ 4,648 per day. (Round to the nearest dollar.) Operation 2 should be chosen. b. Choose the correct answer below. A. A higher production for Operation 2 is being traded off for a higher tool changing time (downtime). B. A higher production for Operation 1 is being traded off for a lower tool changing time (downtime). OC. A higher production for Operation 2 is being traded off for a lower tool changing time (downtime). D. A higher production for Operation 1 is being traded off for a higher tool changing time (downtime).
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