A manager must decide which type of equipment to buy, Type A or Type B. Type A equipment cost $15,000 each, and Type B cost $11,000 each. The equipment can be operated 8 hours a day, 250 days a year. Either machine can be used to perfom two types of chemical analysis, C1 and C2. Annual service requirements and processing times are shown in the following table. Which type of equipment should be purchased, and how many of that type wil be need? The goal is to minimize total purchase cost. processing time per analysis (hr) Analysis type Annual volume A B C1 1200 1 2 C2 900 3 2

A manager must decide which type of equipment to buy, Type A or Type B. Type A equipment cost $15,000 each, and Type B cost $11,000 each. The equipment can be operated 8 hours a day, 250 days a year. Either machine can be used to perfom two types of chemical analysis, C1 and C2. Annual service requirements and processing times are shown in the following table. Which type of equipment should be purchased, and how many of that type wil be need? The goal is to minimize total purchase cost. processing time per analysis (hr) Analysis type Annual volume A B C1 1200 1 2 C2 900 3 2

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. 4,900 minutes 7,000 minutes 3.8 units per minute 4.0 units per minute 15,827 units 18,620 units Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) Required: 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Utilization rate Efficiency rate Quality rate Overall equipment effectiveness
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