Solutions to Homework _1

Solutions to Homework _1 - Solutions to HW #1 IE 1040 Fall,...

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Solutions to HW #1 IE 1040 Fall, 2005 1-1 Some typical applications of engineering economy are listed below. Different organizations have been assumed, but many applications do not vary significantly by the type of organization. Manufacturing Company Addition (expansion) to an existing plant. Improvements to a material handling system. Selecting between numerical controlled milling machines produced by different manufacturers. Selecting the preferred conceptual (preliminary) design for a new consumer product. Selecting the preferred detailed design for an application (e.g. a precompressor option for a present series of large gasoline engines). Service Company Selecting the best type (and model) of light truck for use in a service fleet. Determining the preferred location of a distribution center. Selecting an upgraded computer system to integrate and improve the accomplishment of a number of present functions in an organization. Selecting the preferred conceptual (preliminary) design for a new consumer service and its basic delivery process. Selecting the preferred detailed design for a service (e.g., a home health care service involving professional nursing care to meet the periodic needs of patients). Government Organization Evaluating the contracting of garbage pickup and disposal versus continued accomplishment by a city work force. Analyzing the significant repair and upgrading of a highway bridge versus its replacement with a new structure. Selecting the preferred conceptual (preliminary) design for a new elementary school. Evaluating the life cycle cost for a new major weapon system. Determining the preferred replacement cycle for medium sized backhoes in the highway department equipment fleet. 1-3 Some non-monetary factors (attributes) that might be important are: Safety Reliability (from the viewpoint of user service) Quality in terms of consumer expectations Aesthetics (how it looks, and so on)
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Solutions to HW #1 IE 1040 Fall, 2005 Patent considerations 1-7 Uncertainty refers to the variation of actual values that will occur in the future from the estimated values developed at the time of the study associated with a project. Engineering economic analysis is prospective in that it deals with the analysis of the estimated future consequences of alternative courses of action. Thus, uncertainty is inherently involved.
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Solutions to Homework _1 - Solutions to HW #1 IE 1040 Fall,...

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