BUSI 411 Operations Management Ch 5

11t12J2014

Worksheet

Problem 5-11

Assignmo* Print \lievv

quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.)

Total processing time in minutes per machine: A B

c

Number of each machine needed and total purchasing cost A$

b. Consider this additional infornation: The machines differ in terms of hourly operating costs: The A machines have an hourly oper:ating cost of $12 each, B machines have an hourly operaiing cost of g14 each, and C machines have an hourly operating cost of $1S each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incuned to satisfy demand? (Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)

cost for each machine

B

c $

$

Total A B

c

Difficulty:2 Medium

Learn i ng Objective: 05-03 Describe ways of defining and measuring capacity.

Learning Objective: 05-06 Discuss the major considerations related to developi ng capacity alternatives.

Learning Objective: 05-08 Briefly describe approaches that are useful for evaluating capacity alternatives.

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