Borges Machine Shop, Inc., has a 1-year contract for the production of 225,000 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:

General-Purpose Equipment (GPE) Flexible Manufacturing System (FMS) Dedicated Machine (DM)

Annual contracted units 225,000 225,000 225,000 Annual fixed cost $125,000 $250,000 $500,000 Per unit variable cost $18.00 $14.75 $13.50

Based on the cost, the process that is best suited for the current contracted volume is_______