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Calculating the number of workstations needed

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A plant manager plans to purchase new workstations. He has three choices andtheir prices are listed below.
Workstation
Cost A $55,000
B
$45,000 C $85,000
The new workstation will be used to produce three products. The annual demands for the three products and their processing times on each type of workstations are as the following,
Product
Annual Demand
Processing Time (minutes/unit)
A
B
C
1
15,000
4
5
3 2 12,000 5 5 4
3
25,000
2
3
1
a)Assume that workstations operate 8 hours a day and 250 days a year. The only cost considered is the workstation purchasing cost. Only one type of workstations can be purchased. Which workstation should be purchased and how many of that work station would be needed?

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a)

Time Availability per year=250*8*60 =120000 minutes

Total Processing time for Workstation A=15000*4+12000*5+25000*2=170000 minutes
Workstations needed (A) =Total Processing time demand/Time Availability= 170000/120000 =1.42 or say 2
Total Cost for Workstation A=2*55000=$110,000

Total Processing time for Workstation B=15000*5+12000*5+25000*3=210000 minutes
Workstations needed (B) =Total Processing time demand/Time Availability=210000/120000=1.75 or say 2
Total Cost for Workstation B=2*45000=$90,000

Total Processing time for Workstation C=15000*3+12000*4+25000*1=118000 minutes
Workstations needed (C) =Total Processing time demand/Time Availability=118000/120000=0.98 or say 1
Total Cost for Workstation ...

Solution Summary

The solution depicts the steps to estimate the number of workstations needed in various cases.

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