Question: Textbook: Two material-handling options are being considered for connecting two work centers. A conveyor can be purchased and operated for an annual cost of $275,000.

Textbook: Two material-handling options are being considered for connecting two work centers. A conveyor can be purchased and operated for an annual cost of $275,000. The conveyor can transport up to 500,000 containers per year with each container holding up to eight units. The alternative is a forklift/pallet system that would cost $85,00 per year plus $1.65 per move. The pallets can hold up to 16 units each. The facility expects to manufacture 1,300,000 parts per year. Select the best container size and material-handling option for this production system. Slides: - Assume only fixed cost (\$275K), no variable cost for conveyor - What info is missing in problem? State the assumption you use in the absence of this information - Write conveyer or forklift (your choice of best option) in the first box and final container size in the 2nd final answer box, just the number, no units or symbols. Units and explanation should be in the large box
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