Chapter 27, Problem 27.1APR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain:  The purchasing policy of Company SG.

b)

To determine

To Identify:  The additional costs involved with the bid of Company M beyond price, and the reasons for ignoring them.

c)

To determine

To Calculate:  The additional costs per pound for the bid of Company M, if the annual cost of money is 10%.