ELMO, a manufacturer of electric motors, has just purchased a machine tool for w
ID: 3028323 • Letter: E
Question
ELMO, a manufacturer of electric motors, has just purchased a machine tool for winding coils of electric motors. Initial trials with the machine indicate that the number of rejects produced varies with the running speed of the machine. The result of the six trials for various speed settings are as follows: Rejects have to be scrapped. The material cost of each coil is $2.60. The machine operator is paid at a rate of $22/hour. It costs $6 to operate the machine for one hour, 10.000 good coils have to be produced for a given type of motor. The total cost of producing this batch is used as the performance measure for setting the machine speed Develop the model to solve this problem by calculating cost to operate the winder at 30, 40, 50, 60, 70, 80 and 90 coils per hour. Use EXCEL to solve this problem and send me a copy of your spreadsheet Bring it to class next week and we'll go on from here.Explanation / Answer
1 coil is 2.60 dollars therefore for n number of coils
1 hour machine operator gets 22 dollars
1 hour to operate requires 6 dollars
number of coils to be produced is 10000
total cost= nx 2.60+22+6 where n stands for the number of coils 30,40,50,60 etc
the total cost obtained is then multiplied with 10000 for a given type of motor
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