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Q. In a work center machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The work center makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should machine B be used.
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A shop wishes to raise its capacity by adding new equipment. The company is planning proposals from vendors A and B. The fixed costs for machine A are $90,000 and for machine B, $75,000.
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