Explore BrainMass

Explore BrainMass

    Calculating the number of workstations needed

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com June 4, 2020, 5:26 am ad1c9bdddf
    https://brainmass.com/business/business-math/calculating-number-workstations-needed-625775

    Attachments

    Solution Preview

    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.

    $2.19

    ADVERTISEMENT