Question: The manager of a car wash must decide whether to
The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $ 6,000 a month, and two lines will mean a fixed cost of $ 10,500 a month. Each line would be able to process 15 cars an hour. Variable costs will be $3 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 300 hours a month.
Relevant QuestionsThe following diagram shows a four- step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.a. Determine the capacity of this ...A new piece of equipment will cost $ 12,000 and will result in a reduced operation cost of $ 1,500 per year. What will the payback time be in years?What is sensitivity analysis, and how can it be useful to a decision maker? Refer to Problem 1. Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of low and high demand: P (low) = .3 and P (high) = .7. a. Determine the expected profit of ...Determine the course of action that has the highest EMV for the accompanying treediagram.
Post your question