14. Slippery presently wraps each seat in plastic to protect it from damage and soiling during assembly/delivery.
Question:
14. Slippery presently wraps each seat in plastic to protect it from damage and soiling during assembly/delivery. Assume that the plastic material costs $1, the labor to install it costs $2, and at the dealer it costs $3 to remove the plastic and dispose of it. Slippery is now telling ZMW that other auto manufacturers are able to train their assemblers to be more careful, thereby eliminating the plastic wrapping.
a. What would be the annual benefits of this change to Slippery?
b. What would be the annual benefits of this change to ZMW?
c. What would be the annual benefits of this change to the dealers?
d. How might the end customers benefit?
e. How might one resolve any conflicts between Slippery, ZMW, and the dealers over implementing this change?
Step by Step Answer:
Manufacturing Planning And Control For Supply Chain Management
ISBN: 9780073377827
6th Edition
Authors: F. Robert Jacobs, William Berry, David Clay Whybark, Thomas Vollmann