Operations and Supply Chain Management 9th edition
Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Chapter 6, Problem 15P

Tribal Systems, Inc., is opening a new plant and has yet to decide on the type of process to employ. A labor-intensive process would cost $10,000 for tools and equipment and $14 for labor and materials per item produced. A more automated process costs $50,000 in plant and equipment but has a labor/material cost of $8 per item produced. A fully automated process costs $300,000 for plant and equipment and $2 per item produced. If process selection were based solely on lowest cost, for what range of production would each process be chosen?

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Operations and Supply Chain Management 9th edition

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