ABC Corp. is considering two options for drum handling at their facility: manual

Question

ABC Corp. is considering two options for drum handling at their facility: manual handling using a hand truck, or using a forklift attachment that will carry two drums at a time.

Twenty drums arrive on a truck each day. They are removed from the truck and taken to a staging area about fifty feet from the loading dock (waiting until needed in production).

The production line uses approximately 30 drums per day at three production stations, each approximately 100 feet from the staging area.

The hand truck costs $400. The forklift attachment costs $8000. A fully-loaded manual laborer operating the hand truck costs $12/hour while a forklift operator costs $22/hour (including the cost of operating the forklift).

Determine the number of drums per day that would require each of the deviceoptions (hand truck, forklift) to purchase a second device?

Explanation / Answer

Hand truck

Operating time required= 400/12 hours= 33.3 hours= 33.2*2 ~67 drums

Forklift

Operating time required =8000/22= 363.63 = 363.63*2~728 drums.

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