Jones Industries manufactures iPhone case covers.

Allison CastroAllison Castro,

the CEO, is trying to decide whether to adopt a lean thinking model. She expects that adopting lean production would save $67,000

in warehousing expenses and $47,000

in spoilage costs. Adopting lean production will require several one-time up-front expenditures: $14,500

for an employee training program, $36,000

to streamline the plant's production process, and $8,250

to identify suppliers that will guarantee zero defects and on-time delivery.

1. What are the total costs of adopting lean production?

2. What are the total benefits of adopting lean production?

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