A machine is currently broken and not working . To fix the machine , 4 robotic processors of the brand DURIO with capacity of 39 teraflops must be replaced , and 27 special gears must be deeply cleaned by a mechanic . The purchase of the DURIO robotic processors is a problem that must be solved : the company that makes the DURIO processors is no longer existent , since they went to out - of - business last year . So a new supplier must be found , and quickly . Company ROGA - TED is offering to manufacture such processors for you . They manufacture similar robotic processors but for different capacities : they have never made a 39 teraflop processor before . However , ROGA - TED announces that they will manufacture it for you , if you can provide a fair estimation of the price for the robotic processors . In your company's records , you see that these robotic processors were never replaced before , and so there is no pre - existing data for the price of such items . However , you find that 10 years ago , your company purchased similar processors from DURIO but with different capacities : 26 robotic processors for $ 451158 . Each with a capacity of 53 teraflops . X factor 0.81 . Since this was 10 years ago . You check the index for industrial robotic equipment . At that time the index was 314. Today the index is 152 . Regarding the cleaning of the special gears . The mechanic charges $ 330 per hour to deep - clean the gears . He takes 7 hours to clean the first gear , and every time he doubles his experience , 30 % of the time to clean is reduced ( improved ) . Instructions : Use 2 digit precision for your calculations and to answer the following questions . a ) What should be the fair price estimation that your company should offer ROGA - TED for the 39 teraflop robotic processors ? Why ? Justify ; b ) How much time ( in hours ) will the mechanic need to deep - clean the gears ? Explain : c ) What is the total salary that should be paid to the mechanic ? Explain : d ) What is the total cost to fix the machine ? Justify :

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
icon
Related questions
Question

A machine is currently broken and not working . To fix the machine , 4 robotic processors of the brand DURIO with capacity of 39 teraflops must be replaced , and 27 special gears must be deeply cleaned by a mechanic . The purchase of the DURIO robotic processors is a problem that must be solved : the company that makes the DURIO processors is no longer existent , since they went to out - of - business last year . So a new supplier must be found , and quickly . Company ROGA - TED is offering to manufacture such processors for you . They manufacture similar robotic processors but for different capacities : they have never made a 39 teraflop processor before . However , ROGA - TED announces that they will manufacture it for you , if you can provide a fair estimation of the price for the robotic processors . In your company's records , you see that these robotic processors were never replaced before , and so there is no pre - existing data for the price of such items . However , you find that 10 years ago , your company purchased similar processors from DURIO but with different capacities : 26 robotic processors for $ 451158 . Each with a capacity of 53 teraflops . X factor 0.81 . Since this was 10 years ago . You check the index for industrial robotic equipment . At that time the index was 314. Today the index is 152 . Regarding the cleaning of the special gears . The mechanic charges $ 330 per hour to deep - clean the gears . He takes 7 hours to clean the first gear , and every time he doubles his experience , 30 % of the time to clean is reduced ( improved ) . Instructions : Use 2 digit precision for your calculations and to answer the following questions . a ) What should be the fair price estimation that your company should offer ROGA - TED for the 39 teraflop robotic processors ? Why ? Justify ; b ) How much time ( in hours ) will the mechanic need to deep - clean the gears ? Explain : c ) What is the total salary that should be paid to the mechanic ? Explain : d ) What is the total cost to fix the machine ? Justify : 

Expert Solution
steps

Step by step

Solved in 6 steps with 8 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning