the crystal company produce titanium components for satelites.Coz of increased competition the company has decided to modernize its production facility.3 alternative production technologies are being considered cellular manufacturing(CM), numerically controlled machines(N/C),and a flexibility manufacturing system(FMS).Annual production volume is expected to be anywhere btw 15000 & 20000 units/year during the next several years.Costs for the 3alternatives are:
CM N/C FMS
Annual fixed cost($) 58000 113000 250000
Variable costs/unit($) 189 175 168
A)based on annual cost,at what annual volume would the company be indifferent btw the CM & N/C alternative?btw N/C & FMS alternative?
B)determine the total annual cost for each alternative if annual volume is 15000 & if annual volume is 20000
C)which production technology you recommed to the company?WHY?
D)other factor should considered when making this decision?
2006-10-04 15:30:52 · 1 answers · asked by ^cute_angel^ 1 in Education & Reference ➔ Higher Education (University +)
While the information can be overwhelming, the problems appear to be simply math equations.
Substitute the numbers for the formulas, and you will arrive at relatively simple answers, which will lead you to obvious conclusions.
Good Luck...
2006-10-08 08:09:44 · answer #1 · answered by Teacher Man 6 · 0⤊ 0⤋