A 12-station transfer line was designed to operate with an ideal production rate = 50 parts/hour. however, the line does not achieve this rate, since line efficiency = 0.60. it costs $75/hour to operate the line, exclusive of materials. the line operates 4000 hours per year. a computer monitoring system has been proposed that will cost $25,000 (installed) and will reduce downtime on the line by 25%. if the value added per unit produced = $4.00, will the computer system pay for itself within one year of operation? use expected increase in revenues resulting from the computer system as the criterion. ignore material costs in your calculations.
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A 12-station transfer line was designed to operate with an ideal production rate = 50 parts/hour. however, the line does not achieve this rate, since line efficiency = 0.60. it costs $75/hour to operate the line, exclusive of materials. the line operates 4000 hours per year. a computer monitoring system has been proposed that will cost $25,000 (installed) and will reduce downtime on t uvhe line by 25%. if the value added per unit produced = $4.00, will the computer system pay for itself within one year of operation? use expected increase in revenues resulting from the computer system as the criterion. ignore material costs in your calculations.
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