Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 75,000 $100,000 $18.00 Flexible Manufacturing System (FMS) 75,000 $250,000 $14.50 Dedicated Machine (DM) 75,000 $500,000 $13.00
Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 75,000 $100,000 $18.00 Flexible Manufacturing System (FMS) 75,000 $250,000 $14.50 Dedicated Machine (DM) 75,000 $500,000 $13.00
Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter4: The Simplex Algorithm And Goal Programming
Section4.16: Multiattribute Decision Making In The Absence Of Uncertainty: Goal Programming
Problem 12P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, computer-science and related others by exploring similar questions and additional content below.Recommended textbooks for you
Operations Research : Applications and Algorithms
Computer Science
ISBN:
9780534380588
Author:
Wayne L. Winston
Publisher:
Brooks Cole
Fundamentals of Information Systems
Computer Science
ISBN:
9781337097536
Author:
Ralph Stair, George Reynolds
Publisher:
Cengage Learning
Principles of Information Systems (MindTap Course…
Computer Science
ISBN:
9781305971776
Author:
Ralph Stair, George Reynolds
Publisher:
Cengage Learning
Operations Research : Applications and Algorithms
Computer Science
ISBN:
9780534380588
Author:
Wayne L. Winston
Publisher:
Brooks Cole
Fundamentals of Information Systems
Computer Science
ISBN:
9781337097536
Author:
Ralph Stair, George Reynolds
Publisher:
Cengage Learning
Principles of Information Systems (MindTap Course…
Computer Science
ISBN:
9781305971776
Author:
Ralph Stair, George Reynolds
Publisher:
Cengage Learning