Principles of Operations Management: Sustainability and Supply Chain Management, Student Value Edition (10th Edition)
10th Edition
ISBN: 9780134183954
Author: HEIZER
Publisher: PEARSON
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Textbook Question
Chapter 7, Problem 5P
Stan Fawcett’s company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3,000 units. Stan estimates that it will cost $15,000 to set up the process and then SI.82 per unit for labor and materials.
a) Draw a graph illustrating the crossover (or indifference) point.
b) Determine the number of units where either choice has the same cost.
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Chapter 7 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management, Student Value Edition (10th Edition)
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - Prob. 4DQCh. 7.S - Prob. 5DQCh. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
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