A company produces three part types that account for 60% of the annual production.The remaining 40%…

A company produces three part types that account for 60% of the annual production.The remaining 40% of the production involves part types whose design, size, shape,weight, and operation sequence change very frequently. The production managertherefore prefers to exclude this 40% from material-handling analysis. The productionsequence for part type P1 is machines M1-M4-M3; for part type P2, it is M4-M2-M3;and for part type P3, it is M1-M4-M2-M3. The annual volume of production is 10,000 ,8,000,12,000, respectively, for P1,P2, and P3. Two MHDs, H1 and H2 each at apurchase cost of $100,000 and $140,000, respectively, are being considered. Using thetransportation cost (time) data in table below, determine the required number of eachof the two MHDs, H1 and H2. Also determine how the MHDs are to be assigned to thevarious moves.
Production sequence for P1: M1 – M4 – M3
Production sequence for P2: M4 – M2 – M3
Production sequence for P3: M1 – M4 – M2 – M3
Annual production volumes: 10,000 , 8,000, 12,000 for P1, P2, and P3 respectively.
Considered MHDs: H1 (purchase cost $100,000) and H2 (purchase cost $140,000).
TABLE 9.8Production and Material-Handling Data for Exercise 17