Table 6.18

1. Company X manufactures automotive door panels that may be made of either sheet metal or plastic sheet molding (glass-fiber reinforced polymer). Sheet metal bends well to the high-volume stamping process and have a low material cost. Plastic sheet molding meets the required strength and corrosion resistance and has lower weight. The plastic forming process involves a chemical reaction and has a lower cycle time. Table 6.18 summarizes the cost components for each.

Description Plastic Sheet Metal

Material Cost	5	2
DL Cost	40	40
FO	500,000	400,000
maintenance expenses	100,000	80,000
machinery investment	3 million	25 million
tooling investment	1 million	4 million
equipment life	10	15
cycle time	2	0.1
interest rate	6	6

Assuming that the machinery and tooling have no salvage value at the end of their respective equipment lives, what is the annual production volume that would make the plastic panel more economical?