IE343_HW1_Solutions

# IE343_HW1_Solutions - IE 343 Homework Assignment #1...

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IE 343 Homework Assignment #1 Solutions Due: Sep. 2 2011 Problem 1 Textbook Problem 1-9 Strategy 1: Change oil every 3,000 miles. Cost = (15,000/3,000)(\$30) = \$150 / year Strategy 2: Change oil every 5,000 miles. Cost = (15,000/5,000)(\$30) = \$90 / year Savings = \$60 per year

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IE 343 Homework Assignment #1 Solutions Due: Sep. 2 2011 Problem 2 Textbook Problem 1-10 In six months you will spend approximately \$360 on bottled water (assume 360 days per year). The cost of the filter is \$50, so you will save \$310 every six months. This amounts to \$620 over a year, and you don't need to bother recycling all those plastic bottles! An up-front expenditure of \$50 can indeed save a lot of money each year.
IE 343 Homework Assignment #1 Solutions Due: Sep. 2 2011 Problem 3 Textbook Problem 1-12 (a) Problem: To find the least expensive method for setting up capacity to produce drill bits. (b) Assumptions: The revenue per unit will be the same for either machine; startup costs are negligible; breakdowns are not frequent; previous employee’s data are correct; drill bits are

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## This note was uploaded on 09/19/2011 for the course IE 343 taught by Professor Vincent,g during the Spring '08 term at Purdue University-West Lafayette.

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IE343_HW1_Solutions - IE 343 Homework Assignment #1...

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