Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 13, Problem 44AP
Summary Introduction
Interpretation:
Effectiveness of strategy.
Concept Introduction:
The objective of optimal policy is to determine the value of 't’ that minimizes the total cost of maintenance and replacement over an infinite horizon.
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A cosmetics company fills its best selling jars of facial cream by an automatic dispensing machine. The machine is set to dispense a mean of 7.2 ounces per jar. Uncontrollable factors in the process can cause either underfill or overfill, both of which are undesireable. In such a case, the dispensing can be stopped and recalibrated. Regardless of the mean amount despensed, the standard deviation of the amount dispwnsed always has a value of 0.25 ounce. A quality control engineer routinely selects 36 jars from the assembly line to check the amounts filled. On one occasion, the sample mean is 7.8 ounces. Determine if there is sufficient evidence in the sample to indicate, at the 1% level of significance, that the machine should be recalibrated.
The Woodruff Corporation purchased a piece
of equipment three years ago for $211,000. It
has an asset depreciation range (ADR)
midpoint of eight years. The old equipment
can be sold for $89,000. A new piece of
equipment can be purchased for $321,500. It
also has an ADR of eight years. Assume the
old and new equipment would provide the
following operating gains (or losses) over the
next six years.
Old equ
26,250
14,750
9,500
6,000
5,500
-6,500
The firm has a 25 percent tax rate and a 9
New equipment
81,000
74,500
70,750
61,250
51,500
46,750
year
1
4
percent cost of capital.
What is the net cost of the new equipment?
Round your solution to two decimal places.
What is the present value of incremental
benefits? Round your solution to two decimal
places.
What is the NPV of this replacement decision?
Round your solution to two decimal places.
The annual maintenance costs of a machine that has been in use for 3 years are 300 TL, 350 TL and 375 TL, respectively. The machine is expected to be available for 8 years after purchase. The maintenance costs foreseen for the coming years are 400 TL in the first year and 150 TL in the following years. If the machine is sold today, it can be sold for 1500 TL, and in the following years for 1000 TL. What is the optimum regeneration time of the machine if the MCVO is 10%?
Chapter 13 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 13.1 - Prob. 3PCh. 13.1 - Prob. 4PCh. 13.1 - Prob. 5PCh. 13.1 - Prob. 6PCh. 13.2 - Prob. 7PCh. 13.2 - Prob. 9PCh. 13.3 - Prob. 13PCh. 13.3 - Prob. 14PCh. 13.4 - Prob. 15PCh. 13.4 - Prob. 16P
Ch. 13.4 - Prob. 17PCh. 13.4 - Prob. 18PCh. 13.4 - Prob. 19PCh. 13.4 - Prob. 20PCh. 13.6 - Prob. 21PCh. 13.6 - Prob. 22PCh. 13.6 - Prob. 23PCh. 13.6 - Prob. 24PCh. 13.6 - Prob. 25PCh. 13.7 - Prob. 26PCh. 13.7 - Prob. 27PCh. 13.7 - Prob. 28PCh. 13.7 - Prob. 30PCh. 13.7 - Prob. 31PCh. 13.7 - Prob. 32PCh. 13.7 - Prob. 33PCh. 13.7 - Prob. 34PCh. 13.8 - Prob. 35PCh. 13.8 - Prob. 36PCh. 13.8 - Prob. 37PCh. 13.8 - Prob. 38PCh. 13.8 - Prob. 39PCh. 13.8 - Prob. 40PCh. 13.8 - Prob. 41PCh. 13 - Prob. 42APCh. 13 - Prob. 43APCh. 13 - Prob. 44APCh. 13 - Prob. 45APCh. 13 - Prob. 46APCh. 13 - Prob. 48APCh. 13 - Prob. 49APCh. 13 - Prob. 51APCh. 13 - Prob. 52APCh. 13 - Prob. 53AP
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