ISE 312-Koon-HW 1 - ISE 312 Homework #1 Material Handling...

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ISE 312 Spring_2007 Homework #1 Due: Monday 3/02/04 1 . Economic analysis is needed in evaluating material-handling equipment requirements. One piece of equipment under consideration is a forklift truck that has a purchase price of $70,000 & a 7 yr. life expectancy. The fuel cost has been calculated at $64 per 8 hours of operation. A cost review indicates maintenance cost is $ 3.37 per hour. If the truck has to travel an average of 25,600 feet per day, what is the cost per foot for operating this forklift? (Assume that the truck operates 270 16 per hour including fringe benefits). (10) Depreciation = 70,000 / 7 $/yrs x 1/270 yr./days x (1/ 8) day/hr. = $4.63 /hour Distance / hr = 25,600 ft/day x (1/8) day/hrs = 3,200 feet/hour Total cost/hr = maintenance + fuel + depreciation + operator costs Total cost/hour = 3.37 + 64/8 + 4.63 + 16.00 = $32.00 /hour Operating Costs/foot = $32.00 / 3,200 = $0.010 2. A company delivers finished products in batches to its warehouse daily. The demand between manufacturing and the warehouse changes on the product mix of four items A, B, C, and D. The company has found that trucks respond to the capacity change much more readily than conveyor systems; so, the company is considering purchasing two different types of fork-lift trucks ( #1 or #2 ) for transporting packaged products to its warehouse and loading tractor-trailers for shipping. Equipment specifications for each type of truck are listed below. Pertinent sizes and costs for items A through D are listed below in material characteristics. The loading and unloading cost includes not only cost for loading and unloading for one trip, but also the cost for making the return trip to pick up another load. Determine the least expensive type of forklift truck for transporting the products. Make sure to compare Total Costs for each option. Shipments from the warehouse are made once per week. (Assume 5 day work week). (10) Equipment Specifications: Maximum Loading & Unloading Cost per Equipment Volume (L x W x H) (in) Cost ($) Foot ($) Type #1 48 x 48 x 48 1.30 / trip 0.010 Type #2 60 x 36 x 42 1.12 / trip 0.011 Material Characteristics: Volume Distance from Distance to Units Units Shipped Items (L x W x H) (in) Mfg. (ft.) Shipping (ft.) Received /Day per Week A 12 x 8 x 6 530 130 112 550 B 36 x 36 x 18 215 325 60 296 C 24 x 18 x 12 350 250 90 450 D 18 x 12 x 12 480 175 75 370 ISE 312 Spring_2007 - 1 -
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The number of units that can be moved per trip is given by the capacity of the piece of equipment divided by the volume of the unit to be unit. Capacity for Item A with #1 = 48/12 x 48/8 x 48/ 6 = 4x6x8 = 192 units/truck Each day 112 units so 1 trip per day At shipping 550 units so 3 trips per week Capacity for Item B with #1 = 48/36 x 48/36 x 48/18 = 1x1x2 = 2 units/truck Each day 60 units so 30 trips per day At shipping 296 units so 148 trips per week Capacity for Item C with #1 =
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This note was uploaded on 04/16/2008 for the course ISE 312 taught by Professor Koon during the Spring '08 term at Binghamton University.

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ISE 312-Koon-HW 1 - ISE 312 Homework #1 Material Handling...

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