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Mini-Case 2 - Peru State College BUS 335 PRODUCTION...

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Peru State College BUS 335 PRODUCTION & OPERATIONS MANAGEMENT Capacity Planning Case AKA Mini-Case #2 Due September 13th at 10 pm Based on your great analysis and report from the last consulting assignment, your new best friend at ZoomZoom Motorcycles has a new task for you! The manager must decide which type of machine to buy, A, B, or C. (The machines are labeled as such to avoid any bias from a brand name or any possibility for the manager to connect who is sending him Kansas City Chiefs tickets in the mail) Machine acquisition and non-wage related operating costs (largely cooling oil) are: A = $ 58,000 acquisition, $ 1,950 monthly operating B = $ 45,000 acquisition, $ 2,500 monthly operating C = $ 95,000 acquisition, $ 5,200 monthly operating Demand forecasts and processing times for each machine follow: Processing Time Annual Per Unit (in Minutes) Product Demand A B C 1 16,000 4 3 4 2 14,000 2 4 2 3 6,500 5 5 1 4 29,000 3 2 1
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