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2. Discuss the initial purchase costs of each fryer (all 6) vs. lifetime costs (9 pts):
Actual $ amount of equipment initial purchase comparison (2):
Electric: The energy efficient fryer was the most expensive electric fryer at $7842 while the base
efficiency fryer was the least expensive at $5225. The fryer that I chose (Frymaster H*14) was in
the middle in terms pricing at $6750.
Gas: The energy efficient fryer was the most expensive at $8967 while the base efficiency fryer
and Frymaster ESG35T were closer in pricing at $6679 and $6917 respectively.
Gas vs. Electric: Overall the initial costs of the gas fryers is somewhat more expensive than the
electric.
Electric: The base efficiency fryer has the highest annual energy cost ($3063) and therefore the
highest lifetime energy cost ($36,756). The Frymaster and energy efficient fryer cost less and
have a difference of $157 in annual energy cost or $1884 in lifetime energy cost with the
Frymaster being slightly more expensive ($2716 vs. $2558 or $32,580 vs $30,696).
Gas: The base efficiency fryer has the highest annual energy cost at $1339 (lifetime energy
cost: $16,608). There is a difference of about a $100 in annual energy cost between the
Frymaster($804) and the energy efficient fryer ($706) with the Frymaster being slightly more
expensive. Therefore, the difference in lifetime energy cost for these two fryers is also small at
about $1200 ($9648 vs $8472).
Gas vs. Electric: Overall the gas fryers cost less than the electric fryers in energy cost. As seen
above and in the calculations the lifetime energy cost of the gas fryers are below $20,000
while the electric fryers are above $30,000. For both gas and electric fryers the energy efficient
and Frymaster fryers save more money as well.
There isn't much of a difference in maintenance costs of the three gas vs. electric fryers. All
three electric fryers are ever so slightly expensive at $125 per year while the three gas fryers are
$120 per year. This means that the gas fryers total maintenance cost for a lifetime will be
$1440, while the electric fryers will be $1500 (a mere $60 difference). Therefore, I don't expect
the maintenance cost to be a huge deciding factor in deciding which fryer to choose.
Gas: In terms of total lifetime cost, the base efficiency gas fryer is $24,187 and therefore about
$6000 more than the Frymaster and energy efficiency fryer. The Frymaster and energy
efficiency fryer have a difference of about $800 at $18,005 and $18,879 respectively. In this
case the Frymaster costs less than the energy efficient.
Gas vs. Electric: The gas fryers have a much lower total lifetime cost than the electric fryers with
the base efficiency fryers being the most expensive in both cases.
In terms of initial cost gas fryers are somewhat more expensive than electric fryers but not by a
huge margin if other factors are considered. One example is that the gas energy efficient fryer
is more expensive than the electric one ($8967 vs. $7842). However, the total lifetime cost of
the gas energy efficient fryer saves a lot more money than the electric ($18,879 vs. $40,038).
Also, the maintenance cost doesnt seem to be a huge factor because the gas fryers save
only $5 a year or a total of $60 in its lifetime. Energy cost is a larger factor and as explained
above the gas fryers save more money with the Frymaster ESG35T and energy efficient fryers
being good choices. Finally, gas fryers save more money in terms of total lifetime cost since all
3 gas fryers are below $25,000 while the 3 electric fryers are above $40,000.
3. Discuss each fryers performance in terms of efficiency and production capacity (2 pts):
Efficiency (%) comparison (1):
Gas: The energy efficient fryer has the highest efficiency % at 57% while the base efficiency
fryer has the least at 35%. The Frymaster is much more efficient than the base efficiency fryer
but less efficient than the energy efficient fryer at 50%
Electric: The energy efficient fryer is the most efficient at 85% and the least efficient is the base
efficiency fryer at 75%. The Frymaster is more efficient than the base efficiency but less efficient
than the energy efficient fryer at 81%.
Gas vs Electric: Overall the electric fryers (more than 70%) are more efficient than the gas (less
than 60%)
Gas: The energy efficient fryer produces the most at about 67lb per hour. The Frymaster
actually produces slightly less (58lb/h) than the base efficiency (60 lb/hr) even though the
Frymaster is more efficient.
Electric: The energy efficient fryer produces the most at 71lb/hr while the Frymaster comes in
close at 68lb/hr. The base efficiency fryer produces the least at 65lb/hr.
Gas vs. Electric: The electric fryers overall produce more pounds per hour than the gas fryers.
4. Compare all 6 fryers overall and state your top choice (1 pt).
Overall comparison:
Gas fryers are slightly more expensive than electric fryers in terms of initial cost. However, gas
fryers cost less in total lifetime cost than electric fryers since gas fryers save more money on
energy costs. In that case, when comparing the three gas fryers, the energy efficient fryer and
the Frymaster ESG35T are better choices in terms of cost with the Frymaster costing $874 less.
The energy efficient gas fryer does produce more and is more efficient than the Frymaster. But
the Frymaster can still handle the 50 lb needed at lunch time with 8 lb to spare. In that case I
would say it would be fine to choose the Frymaster ESG35T over the energy efficient to save
the $874. Again, I would not go with the electric because the total lifetime cost is more
expensive even though the efficiency is better. Therefore, my top choice is the Frymaster
ESG35T.
5. Complete the chart below. Discuss the production capacity of your selected fryer. Is it
adequate for your needs? Explain in the box below. (1 pt)
Your Fryers Load Size Your fryers cook time to cook Your Fryers Production
(lb potatoes) one load of potatoes (min.) Capacity (lb/hour)
Gas fryers are slightly more expensive than electric fryers in terms of initial cost.
However, gas fryers cost less in total lifetime cost than electric fryers since gas fryers
save more money on energy costs. In that case, when comparing the three gas fryers,
the energy efficient fryer and the Frymaster ESG35T are better choices in terms of cost
with the Frymaster costing $874 less. The energy efficient gas fryer does produce more
and is more efficient than the Frymaster. But the Frymaster can still handle the 50 lb
needed at lunch time with 8 lb to spare. In that case I would say it would be fine to
choose the Frymaster ESG35T over the energy efficient to save the $874. Again, I
would not go with the electric because the total lifetime cost is more expensive even
though the efficiency is better. Therefore, my top choice is the Frymaster ESG35T.
7. Provide a justification/proposal for your boss to include at least the following (6 pts):
a. Reason you need a new fryer
b. Which fryer you propose to purchase
c. Include the initial cost and lifetime cost ($)
d. Your reasons for recommending it
A new fryer is needed for our foodservice facility because our current fryer is already 12 years
old. The new fryer will be used for making French fries and sweet potato fries, especially at
lunch time when about 50 lb of fries is needed to fulfill orders at peak hours. Therefore, I
propose to purchase the Frymaster ESG35T. Its initial cost is $6917 and less than that of
comparable gas fryers. In other words, we could save up to about $2000 initially by considering
Frymaster instead of the gas energy efficient fryer, which is $8967. In addition, the total lifetime
cost of the Frymaster is almost half that of electric fryers, which add up to more than $40,000.
As a result, we can meet our budget of $20,000 and save almost three quarters in energy
costs. Also, because the Frymaster ESG35T is powered by gas we will not have to worry about
having an efficient electricity source to match the efficiency of an electric fryer. Therefore, we
will avoid adding an extra expense on top of the already high price of electric fryers.
Furthermore, gas prices are at an all-time low making it a good source of energy in terms of
saving money for our facility. As mentioned earlier, our peak time of production is during lunch
hours when 50 lb of fries per hour are needed to match orders. The Frymaster ESG35T can
produce 58 lb of fries per hour meaning that we would have a leftover of 8 lb of fries in case
extra is required.