Question

In Problem 18, the Dynaco Company has found that if more than three units (average) are waiting to be processed at any one workstation, then too much money is being tied up in work-inprocess inventory (i.e., units waiting to be processed). The company estimates that (on average) each unit waiting to be processed costs $50 per day. Alternatively, operating a third press would cost $150 per day. Should the company operate a third press at this workstation?



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  • CreatedJuly 17, 2014
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