Question: Borges Machine Shop, Inc, has a 1-year contract for the production of 75,000 goar housings for a new off-road vehicie. Owner Luis Borges thopes the

Borges Machine Shop, Inc, has a 1-year contract
Borges Machine Shop, Inc, has a 1-year contract
Borges Machine Shop, Inc, has a 1-year contract for the production of 75,000 goar housings for a new off-road vehicie. Owner Luis Borges thopes the contract Wilf be extended and the volume increased next year. Borges has developed costs for three altematives. They are general-purpose equipment (GPE), fiexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Based on the total oost, the process that is best suited for the cuerent contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the fotal cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suled for the now voume is Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be oxtended 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: Based on the totat cost, the process that is best suiled for the current contracted volume is Suppose the contracted volume changes to 275.000 gear housings. Based on the total cost t is best suifed for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost GPE tis best suited for the new volume is FMS DM

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