Assignment:
Material handling function is fundamental to any manufacturing or distribution system. In order to improve the productivity of a manufacturing system, the management decided to install a new tow line. The tow line conveyor required length is 1200 ft., cost per foot = $25, installation cost per foot is 30% of purchase cost, and salvage value is 10% of purchase cost.
a. Determine Total Cost of material handling
b. If service life of the conveyor is 15 years, what is annual (depreciation) cost
c. Suppose production volume is 300 units/day (350 days per year) what is the material handling cost per unit of product per year