Classic industries manufactures iphone case covers. Ruth Rome, the CEO, is trying to decide whether to adopt a lean thinking model. She expects that adopting lean production would save $87,000 in warehousing expenses and $47,000 in spoilage costs. Adopting lean production will require several one-time up front expenditures $27,000 for an employee training program, $36,000 to streamline the plants production process and $8,500 to identify suppliers that will guarantee zero defects and on time delivery.

What are total costs of adopting lean production?

What are the total benefits of adopting lean production?

Should the company adopt lean production? Why or why not?