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Operations Technology

Please review the attached assignment and let me know if my assumption where correct. Also, do you have a view on how question # 4 should be answered.

Create a table showing the total annual cost of each option if annual volume (in thousand pounds) is 50, 200, 500.
Circle the lowest cost at each annual volume

Answer 2...

Question 3
Based only on annual cost, for what range of annual volumes would each option be preferred?

Answer 3
Option 1 at 50,000, Option 2 at 200,000 and Option 3 at 500,000

Question 4
What factors other than annual cost should be considered when making these decsions?

Please see attached.

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