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August 28, 2015

Homework Help: operations management

Posted by Tyron on Wednesday, April 22, 2009 at 4:34pm.

a large hospital wishes to create electronic images of old patient records for electronic management. it has identified three options: outsourcing the scanning to a service bureau, purchasing an office scanner and purchasing a highspeed production scanner. ( Since the records are old the time it takes to finsh the job is not a primary concern). outsourcing the job cots $0.50 per document, using the office scanner costs $0.40 per document and using the highspeed scanner costs $0.20 per document (these costs includes labor). The overhead (fixed) cost for outsoursing is negligible, the office scanner costs $10,000 and the highspeed production scanner costs $350,000. The equipment selection is a function of the number of documents to be scanned. What are the break- even points?

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