Question: ( b ) A manager must decide which type of machine to buy, A , B , or C . Machine costs are as follows:
b A manager must decide which type of machine to buy, or C Machine costs are as follows:
Product forecasts and processing times on the machines are as follows:
i The hourly operating cost of the machines A is $ B machines have an hourly operating cost of
$ and C machines have an hourly operating cost of $ Considering the machine costs costs of
the machines are for one year each and hourly operating costs, which alternative would be
selected, and how many machines, to minimize total cost while satisfying capacity processing
requirements? Assume machines operate hours a day, days a year.
ii Assume machines operate hours a day and days a year then what will be the choice in
question i
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