Concept explainers
Case summary:
RM Company is looking to change its numerically controlled machines into a flexible manufacturing system. The transition will handle about 30% of RM Company’s work. There will be additional costs for startup process. The new system is likely to reduce the inventory, floor space, production time and number of labors required.
The annual labor savings is a huge sum on the implementation of the new process. The company’s
To determine: The case of an optimistic sales manager to move on forward with the flexible manufacturing system (FMS).
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