Question: * 3 - 6 9 . Consider the TOYCO model. ( a ) Suppose that any additional time for operation 1 beyond its current capacity

*3-69. Consider the TOYCO model.
(a) Suppose that any additional time for operation 1 beyond its current capacity of 430 mins per day must be done on an overtime basis at $50 an hour. The hourly cost includes both labor and the operation of the machine. Is it economically advantageous to use overtime with operation 1?
(b) Suppose that the operator of operation 2 has agreed to work 2 hrs of overtime daily at $45 an hour. Additionally, the cost of the operation itself is $10 an hour. What is the net effect of this activity on the daily revenue?
(c) Is overtime needed for operation 3?
(d) Suppose that the daily availability of operation 1 is increased to 440mins. Any overtime used beyond the current maximum capacity will cost $40 an hour. Determine the new optimum solution, including the associated net revenue.
(e) Suppose that the availability of operation 2 is decreased by 15mins a day and that the hourly cost of the operation during regular time is $30. Is it advantageous to decrease the availability of operation 2?
 *3-69. Consider the TOYCO model. (a) Suppose that any additional time

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!