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Evaluating Three Manufacturing Systems for Different Volumes

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See the attached file.
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.

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Solution Summary

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

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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