Total processing time required machine type to meet demand

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Reference no: EM132100902

A manager must decide which type of machine to buy A, B, C. Machine costs (per individual machine) are as follows: Machine A 50,000 Machine B 40,000 Machine C 70,000 Product forecasts and processing times on the machine are as follows 1 18,000 1 6 2 2 25,000 5 5 1 3 15,000 4 3 2 4 9,000. 5 1 6 Assume that only purchasing costs are being considered. Compute the total processing time required machine type to meet demand, how many of each machine type would needed and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 220 days a year ( enter total processing times as whole numbers. Round each quantities to the next higher whole number. Compute total purchasing costs using these rounded machines quantity). B. Consider this additional information machine A operating cost of $10 each b. Hourly cost $12 C. Hourly cost is $11. What would be the total cost associated with each machine option, including both initial purchasing cost and the annual operating cost incurred to satisfy demand ( use rounded machine quantities from part a . do not round any other intermediate calculations. Round the final answers to whole numbers).

Reference no: EM132100902

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