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11. Transfer line design. The Tech Manufacturing Company is contemplating the acquisi- tion of a transfer line to make digital adapters for its highly successful Tech-o-Tronic brand of multi-frequency desktop widgets. The making of widget adapters is a multi-step process. It requires rough drilling, finished reaming, bolt insertion, and spot painting. Several different vendors have been invited to submit bids for the machines and buffers that will make up the line. It is your job to pick the least expensive combination of machines and buffers that produces the required production rate of 500 parts per hour. Which of the following machines should the company purchase, and what size buffers should it have to mini- mize cost? Justify your answer. An answer within 1% of the optimum will be judged correct. Assume that the value of parts in storage between the drilling and reaming stages is $10 per part, the value of parts between reaming and bolt insertion is $20 per part, and the value of parts between insertion and painting is $30. The following is a summary of the information supplied by the vendors. The ALPHA Machine Tool Company has a rough drilling machine that costs $25,000 that can do 11 operations per minute on the average and has a mean time to fail of 400 hours and a mean time to repair of 20 hours. The ALPHA Machine Tool Company has a final reaming machine that costs $50,000 that can do 10.5 operations per minute on the average and has a mean time to fail of 500 hours and a mean time to repair of 20 hours. The BETA Machine Tool Company has a rough drilling machine that costs $20,000 that can do an average of 10 operations per minute and has a mean time to fail of 150 hours and a mean time to repair of 30 hours. The BETA Machine Tool Company has a final reaming machine that costs $45,000 that can do an average of 10 operations per minute and has a mean time to fail of 200,000 operations and a mean time to repair of 20 hours. 16 Which answer do you think the author is looking for? EXERCISES 175 The GAMMA Machine Tool Company has a machine that can do both rough drilling and final reaming. It costs $80,000 and can process (perform both operations on an average of 10 parts per minute and has a mean time to fail of 400 hours and a mean time to repair of 20 hours, The INSERT-a-BOLT Model 25 can insert 2000 bolts per hour on the average with a mean time to fail of 1,000,000 operations and a mean time to repair of 10 hours. It costs $20,000. The STUFF-a-BOLT Model 52 has an average production rate of 1000 bolts per hour with a mean time to fail of 500,000 operations and a mean time to repair of 10 hours. It costs $5,000. The DROP-a-SPOT can paint 11 parts per minute, on the average, with a mean repair time of 10 hours and a mean time to fail of 400 hours. It costs $15,000. 11. Transfer line design. The Tech Manufacturing Company is contemplating the acquisi- tion of a transfer line to make digital adapters for its highly successful Tech-o-Tronic brand of multi-frequency desktop widgets. The making of widget adapters is a multi-step process. It requires rough drilling, finished reaming, bolt insertion, and spot painting. Several different vendors have been invited to submit bids for the machines and buffers that will make up the line. It is your job to pick the least expensive combination of machines and buffers that produces the required production rate of 500 parts per hour. Which of the following machines should the company purchase, and what size buffers should it have to mini- mize cost? Justify your answer. An answer within 1% of the optimum will be judged correct. Assume that the value of parts in storage between the drilling and reaming stages is $10 per part, the value of parts between reaming and bolt insertion is $20 per part, and the value of parts between insertion and painting is $30. The following is a summary of the information supplied by the vendors. The ALPHA Machine Tool Company has a rough drilling machine that costs $25,000 that can do 11 operations per minute on the average and has a mean time to fail of 400 hours and a mean time to repair of 20 hours. The ALPHA Machine Tool Company has a final reaming machine that costs $50,000 that can do 10.5 operations per minute on the average and has a mean time to fail of 500 hours and a mean time to repair of 20 hours. The BETA Machine Tool Company has a rough drilling machine that costs $20,000 that can do an average of 10 operations per minute and has a mean time to fail of 150 hours and a mean time to repair of 30 hours. The BETA Machine Tool Company has a final reaming machine that costs $45,000 that can do an average of 10 operations per minute and has a mean time to fail of 200,000 operations and a mean time to repair of 20 hours. 16 Which answer do you think the author is looking for? EXERCISES 175 The GAMMA Machine Tool Company has a machine that can do both rough drilling and final reaming. It costs $80,000 and can process (perform both operations on an average of 10 parts per minute and has a mean time to fail of 400 hours and a mean time to repair of 20 hours, The INSERT-a-BOLT Model 25 can insert 2000 bolts per hour on the average with a mean time to fail of 1,000,000 operations and a mean time to repair of 10 hours. It costs $20,000. The STUFF-a-BOLT Model 52 has an average production rate of 1000 bolts per hour with a mean time to fail of 500,000 operations and a mean time to repair of 10 hours. It costs $5,000. The DROP-a-SPOT can paint 11 parts per minute, on the average, with a mean repair time of 10 hours and a mean time to fail of 400 hours. It costs $15,000