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    Evaluating Three Manufacturing Systems for Different Volumes

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    GENERAL
    PURPOSE FLEXIBLE DEDICATED
    EQUIPMENT MANUFACTURING MACHINE
    (GPE) SYSTEM (FMS) (DM)
    Annual contracted
    Units 200,000 200,000 200,000
    Annual fixed cost $100,000 $200,000 $500,000
    Per unit variable
    Cost $ 15.00 $ 14.00 $ 13.00

    Using the above data, determine the best process for each of the following volumes:
    (1) 75,000, (2) 275,000, (3) 375,000.

    © BrainMass Inc. brainmass.com October 10, 2019, 7:58 am ad1c9bdddf
    https://brainmass.com/business/operations-research/evaluating-manufacturing-systems-different-volumes-602319

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    Solution Summary

    This solution identifies the best manufacturing alternative for each of the given volumes.

    $2.19