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number. Umit the > sign in your response.) Total processing time in minutes per machine: Number of each machine needed and tA manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine Cost 40,000 A A 30,000

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Answer #1

a.

Unit processing time
Product Demand A B C
1 16,000 3 4 2
2 12,000 4 4 3
3 6,000 5 6 4
4 30,000 2 2 1
Workload (minutes) 186,000 208,000 122,000
Available time per m/c 150,000 150,000 150,000
# machines 1.24 1.39 0.81
# machines (rounded up) 2 2 1
Cost per machine $40,000 $30,000 $80,000
Total cost $80,000 $60,000 $80,000
$220,000

Calculations:

F Unit processing time Product Demand А 16000 3 120004 3 3 6000 5 30000 2 Workload (minutes) =SUMPRODUCT($C$3:$C$6,D3:06) =SU

Total processing time
A 186,000
B 208,000
C 122,000
Number of each machine needed and total cost
A 2 $80,000
B 2 $60,000
C 1 $80,000

b.

Unit processing time
Product Demand A B C
1 16,000 3 4 2
2 12,000 4 4 3
3 6,000 5 6 4
4 30,000 2 2 1
Workload (minutes) 186,000 208,000 122,000
Available time per m/c 150,000 150,000 150,000
# machines 1.24 1.39 0.81
# machines (rounded up) 2 2 1
Cost per machine $40,000 $30,000 $80,000
Total cost $80,000 $60,000 $80,000
Operating cost $31,000 $38,133 $24,400
$313,533

Nm Unit processing time Product Demand 16000 3 12000 4 6000 5 30000 Workload (minutes) =SUMPRODUCT($C$3:$C$6,D3:06) =SUMPRODU

Total cost of each machine
A $111,000
B $98,133
C $104,400
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