Problem 1 Jackson Custom Machine Shop has a contract for 130,000 units of a new product. Sam Jumper, the owner, has calculated the cost for three process alternatives. Fixed costs will be: for general-purpose equipment (GPE), \$150,000; flexible manufacturing (FMS), \$350,000; and dedicated automation (DA), $950,000. Variable costs will be: GPE, $10;FMS,$8; and DA, $6. Which should he choose? Problem 2 As in most kitchens, the baking ovens in Lori's Kitchen in New Orleans are located in one area near the cooking burners. The refrigerators are located next to each other as are the dishwashing facilities. A work area of tabletops is set aside for cutting, mixing, dough rolling, and assembling of final servings, although different table areas may be reserved for each of these functions. Given the following Interdepartmental Activity Matrix, develop an appropriate layout for Lori's Kitchen. Ine present layout is: with a distance of 10 feet between adjacent areas. Computing the Load Distance measure: Develop a preferred layout. What is the sum of the loads * distance of your new layout