Nicholas is the facilities manager for Green Market Groceries. The store is remodeling and wants to determine which brand of freezer to use for its frozen goods section. The freezers vary by size, cabinet type, accessibility, refrigerant, and interliner. These variables affect both the purchase cost and the operating cost (e.g., energy consumption) of each freezer. Currently, the cost of energy per kilowatt hour (kwh) is $0.10. Green Market expenses capital purchases over a three-year period. Given the cost and capacity data below, calculate the “productivity” (i.e., the cubic feet of freezer space per dollar) for each freezer alternative. Which freezer brand would you recommend to Nicholas?

Question

ALASKAN SEAL

BRR FROST

COLD CASE

DEEP FREEZE

Purchase cost

$3270

$4000

$4452

$5450

Daily energy consumption (kwh)

3.61

3.88

6.68

29.07

Volume (cu ft)

25

35

49

72

Im so confused... i know productivity is cubic feet/total cost but i have no idea how to do this

Sarah · Accepted Answer

THANK YOU so much

oobleck · Answer

For freezer A, we have
cost = 3270
energy = 3.61 kwh
energy cost = $0.10/kwh
volume = 25 ft^3
energy in 3 years = 3.61 kwh/day * 3*365 days = 3953 kwh = $395.30
So, the cost over 3 years is 3270+395.30 = $3665.30
So the productivity is 25ft^3/3665.30$ = 0.00682 ft^3/$

Now do the others, and pick the best unit.