Matching Supply with Demand

Business

Quiz 17 :
Sustainable Operations

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Quiz 17 :
Sustainable Operations

Sustainability is one of the most important aspects of the modern businesses. Sustainability, on one hand, works on efficient uses of the resources and on the other side, emphasizes on reduction of total emission per unit of output produced. The fuel oil emits 38.2 kg of CO2 per litre of fuel and the fuel used for transportation is 1,400,000 litres. So, img img Compute the emission as follows: img So, the emission of CO2 is img

The breakeven point between two alternatives happens at a time point when the total cost (i.e. the sum of all fixed and variable cost) becomes the same for both the alternatives. a. Let us define img as the time in hours when the breakeven occurs for the LED. Compute the total cost of using one LED for t hours as follows: img img Purchase cost of one LED = $12 So, img --- (1) Compute the total cost of using one light bulb for t hours as follows: img img Purchase cost of one bulb = $0.4 So, img ---- (2) For breakeven to happen, equate equation (1) and (2) as follows: img However, note that this value is more than 1,000 hours which is the life of one bulb. So, it is not possible to take this value as the breakeven hours. Re-compute the breakeven by considering two bulbs purchased i.e. double the purchase cost from $0.40 to $0.80. img Rounding off, the total hours after which the LED will become breakeven with the bulb is img b. First, compute the total hours of operation in one year. img img img So, in a year img of CO2 will be consumed by LED.