A manufacturing firm is considering the following data related to three process strategies for expanding its operations.Flexible Manufacturing System (FMS)Annual production level (units)General Purpose Equipment (GPE)50,000Dedicated Machine (DM)50,00050,000Annual fixed cost (USD)100,000220,000800,000Per unit variable cost (USD)21148.What is the maximum value of the unit variable cost (rounded to the nearest whole number) of FMS that will not affect the optimal choice for this problem?

Price value of FMS at which the general purpose equipment and flexible manufacturing system will…

A manufacturing firm is considering the following data related to three process strategies for expanding its operations. General Purpose Equipment (GPE) Flexible Manufacturing System (FMS) 50,000 Dedicated Machine (DM) 50,000 Annual production level (units) Annual fixed cost (USD) 50,000 100,000 220,000 800,000 Per unit variable cost (USD) 21 14 What is the maximum value of the unit variable cost (rounded to the nearest whole number) of FMS that will not affect the optimal choice for this problem?

A manufacturing firm is considering the following data related to three process strategies for expanding its operations. General Purpose Equipment (GPE) Flexible Manufacturing System (FMS) 50,000 Dedicated Machine (DM) 50,000 Annual production level (units) Annual fixed cost (USD) 50,000 100,000 220,000 800,000 Per unit variable cost (USD) 21 14 What is the maximum value of the unit variable cost (rounded to the nearest whole number) of FMS that will not affect the optimal choice for this problem?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Concept explainers

Lean Production

The word lean refers to the “slim “that is used in manufacturing for the systematic designing that focuses on minimizing the waste in the manufacturing or production with the constant productivity of the operation. Lean manufacturing was rooted from Toyota Production system a Japanese manufacturing company that works on the approach of minimizing the non-value-added activities and making the production lean.

Question

A manufacturing firm is considering the following data related to three process strategies for expanding its operations.
Flexible Manufacturing System (FMS)
Annual production level (units)
General Purpose Equipment (GPE)
50,000
Dedicated Machine (DM)
50,000
50,000
Annual fixed cost (USD)
100,000
220,000
800,000
Per unit variable cost (USD)
21
14
8.
What is the maximum value of the unit variable cost (rounded to the nearest whole number) of FMS that will not affect the optimal choice for this problem?

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