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|11:00 AM Start
|Max Build up = (1500*.7*12) - (600*12) 3200 |4600
|Bottleneck (bbls/hr)
|6000
|Max wait time
|7.67
|Average wait time (for those who wait)
|3.83
|Weighted average wait time (hrs)
|1.60
|Weighted average wait time (min)
|95.83
|7:00 AM Start
|2200 |
|600 |
|3.67 |
|1.83 |
|0.76 |
|45.83
What are the possible capital investments considered by NCC? Quantify the costs and
benefits of three of them: the fifth Kiwanee dumper purchased in 1980, and two other
investments.
NCC are considering to purchase two new dryers [$25,000 every ]and to change over 10 dry
berry holding receptacles so they can hold water collected or dry berries [5,000 every bin]. This
speculation expands the suggested use as well as diminishes the holding up time and spare the
work cost. The profit from diminishing the normal holding up time and sparing work expense
balance the use of this investment,$100,00.
As should be obvious, after the venture, the inferred usage of drying abatements from 175%,
which is the bottleneck in an unique arrangement to 105% in another arrangement. In the wake
of changing over 10 dry holding receptacles, the inferred use of dry holding containers
increments from 11.25% in the first arrangement to 30% in the new one.
What recommendations would you make to Mr. Schaeffer? Please be ready to discuss in
class other factors that might influence your recommendations to NCC.