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Question

A conventional lathe and a CNC lathe are under consideration for machining a given part. The relevant data are shown below:

Preparation Cost Rs Production time per part (min) Mahine and operator cost (Rs)
Conventional Lathe 30 30 75
CNC Lathe 150 !5 120

The machine preferred for producing 100 pieces is

A
conventional lathe
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B
CNC lathe
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C
any of the above
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D
None of these
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Solution

The correct option is B CNC lathe
Let Q= No. of parts produced.
Total cost (TC) on conventional lathe
=30+3060×75×Q
=30+37.5Q

TC on CNC lathe
=150+1560×120×Q
=150+30Q

Let Q=100 parts
TC on conventional lathe
=30+37.5×100=3780
TC on CNC lathe
=150+30×100=3150
Due to low cost CNC lathe is preferable.

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