Question: Borges Machine Shop Inc has a 1 year contract for

Borges Machine Shop, Inc., has a 1- year contract for the production of 200,000 gear housings for a new off- road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general- purpose equipment ( GPE), flexible manufacturing system ( FMS), and expensive, but efficient, dedicated machine ( DM). The cost data follow:

Which process is best for thiscontract?
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  • CreatedMarch 20, 2014
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