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Tanner's Machine Shop, Inc., has a 1-year contract for the production of 50,000 gear housings for a new off-road vehicle. Owner, Danny Tanner, has developed
Tanner's Machine Shop, Inc., has a 1-year contract for the production of 50,000 gear housings for a new off-road vehicle. Owner, Danny Tanner, has developed costs for three manufacturing alternatives. They are manufacturing using general-purpose equipment (GPE), a flexible manufacturing system (FMS), and an expensive, but efficient, dedicated machine (DM). The cost data follow: 1. Which process is best for this contract? 2. Determine the economical volume for each process using the cross over calculation method. 3. Determine the best process for each of the following volumes: (1) 12,000 (2) 15,000 and (3) 25,000
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