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Unformatted text preview: Problem 4: If Taggert Custom Machine is able to convince the customer to renew the contract for another one or two years, what implications does this have for his decision? ANSWERS: Problem 1: Solve for the crossover between GPE and FMS: Solve for the crossover between FMS and DA: 1 Therefore, at a volume of 130,000 units, FMS is the appropriate strategy. Problem 2 & 3: Problem 4: If Taggert Custom Machine were able to get the customer to extend the contract for another two years, the owner would certainly wish to take advantage of the savings using Dedicated Automation. 2...
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 Spring '09
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