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A manufacturing firm has received a contract to assemble 1 0 0 units of test equipment in the next year. The firm must decide how

A manufacturing firm has received a contract to assemble 100 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers at $32 per hour each can individually assemble the test equipment in 2.7 hours per unit. Alternatively, teams of five less-skilled workers (at $22 per hour each) can assemble a unit in 0.8 hours. Which approach is the best? What criteria did you use to make your decision?
Answer: $86.40 for individual and $88 for team assembly, therefore select individual assembly.
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