Adamson University

College of Engineering
Industrial Engineering Department
Name: ____________________________________________________________
Subject: ____________________________________________________________

Score: _________________
Schedule: ______________

Take Home Quiz 2

Present Economy Prelim

Solve the following problems as neatly as possible. No solution no credit. No rounding off in between
process. Box your final answer. (15 pts. each)

1. In the design of an automobile radiator, an engineer has a choice of using either a brasscopper alloy casting or a plastic molding. Either material provides the same service.
However, the brass-copper alloy casting weighs 25 pounds, compared with 16 pounds for
the plastic molding. Every pound of extra weight in the automobile has been assigned a
penalty of $4 to account for increased fuel consumption during the life cycle of the car.
The brass-copper alloy casting costs $3.35 per pound while the plastic molding costs
$7.40 per pound (no machining is required for plastic). Machining costs per casting are
$6.00 for the brass-copper alloy. Which material should the engineer select, and what is
the difference in unit costs?

2. Two machines are being considered for the production of a part. The material cost and
selling price per part are $6 and $12 respectively.
Machine A
Machine B

Production rate
100 parts/hour
130 parts/hour
Hours available for production
7 hrs/day
6 hrs/day
Operator cost
$20/hr
$20/hr
Parts rejected
3%
10%
Assuming that all parts that are not rejected can be sold, which machine should be
selected based on expected daily profit? The investment cost is the same for both
machines and can be ignored.

3. A company has a contract to build a sewer nearby province. It must dig a ditch 2 m wide,
1 m deep, and 2,000 m long. Laborers are available at P 250 a day for an 8-hour day, and
they can dig on the average of 0.50 cu. m per hour.
A ditch digging machine maybe rented at a cost of 1000 a day for all the time it was in use
or in transit. Freight costs would total P600. The machine operator would be paid P380 a
day including travel time for two days. If the machine is used, 3 laborers would be
required. The ditch-digging machine can excavate 1 cu. m in 6 minutes. All workers and
machine rentals must be paid on a full 8-hour day basis. What would you recommend?

4. One method for developing a mine containing an estimated 200,000 tons of ore will result
to 70% of the available ore deposit and will cost $23 per ton of material removed. As
second method of development will recover only 67% of the ore deposit, but it will cost
only $15 per ton of the material removed. Subsequent processing of the removed ore
recovers 300 pounds of metal from each ton of processed ore and cost $40 per ton of ore
processed. The ore contains 300 pounds of metal per ton, which can be sold for $ 0.70 per
pound. Which method for developing the mine should be used?

5. A certain machine part may be made either from alloy of Aluminum or Steel. There is an
order for 8,000 units. Steel costs $3.80 per kg., while aluminum costs $8.70 per kg. If steel
is used, the steel per unit weighs 110 grams, for aluminum, 30 grams. When steel is used,
50 units can be produced per hour; for aluminum 80 units per hour with the aid of a tool
costing $640, which will be useless after the 8,000 units are finished. The cost of the
machine and operator is $10.80 per hour. If all the remaining costs are identical,
determine which material will be more economical and recommend according to your
computations.