Answer :
Based on the lowest Total Equipment Cost (TEC), the operator can service 3 machines.
To determine the number of machines the operator can service based on the lowest Total Equipment Cost (TEC), we need to calculate the TEC for different numbers of machines. Here's how we can approach it:
1. Calculate the time required for one complete cycle:
The time required for one complete cycle includes the time to service a machine (1.60 minutes), the time to walk to the next machine (0.4 minutes), and the time the machine runs automatically (6 minutes). Therefore, one complete cycle takes 1.60 minutes + 0.4 minutes + 6 minutes = 8 minutes.
2. Calculate the operator's productive time:
The operator's productive time is the time spent servicing machines within one complete cycle. It is the total time available in one cycle (8 minutes) minus the time spent walking to the next machine (0.4 minutes). Therefore, the operator's productive time is 8 minutes - 0.4 minutes = 7.6 minutes.
3. Calculate the number of machines the operator can service:
To calculate the number of machines the operator can service, divide the operator's productive time by the time required to service one machine. In this case, the operator takes 1.60 minutes to service one machine. Therefore, the number of machines the operator can service is 7.6 minutes / 1.60 minutes ≈ 4.75 machines.
Since we cannot have a fractional number of machines, we round down to the nearest whole number. Therefore, the operator can service a maximum of 4 machines.
However, since the question asks for the lowest TEC, we need to consider the cost aspect. As the machines cost $18.00/hour to run and the operator earns $12.00/hour, it is more cost-effective to have fewer machines. Based on the lowest TEC, the operator can service 3 machines.
Therefore, the correct answer is E. 3.
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