SP10 BUS3-140
7.5
GPE’s total cost = $4,600,000 = [($15
×
300,000)
+ $100,000]
FMS’s total cost = $4,400,000 = [($14
×
300,000)
+ $200,000]
DM’s total cost = $4,400,000 = [($13
×
300,000)
+ $500,000]
The total cost for Dedicated Machinery and Flexible Manufacturing System the same and lowest.
7.6
15
x
+ 100,000 = 14
x
+ 200,000. Therefore
x
= 100,000
14
x
+ 200,000 = 13
x
+ 500,000. Therefore
x
= 300,000
GPE is best below 100,000
FMS is best between 100,000 and 300,000
DM is best over 300,000
7.7
Based on the solution to Problem 7.6
at 75,000 units use GPE
at 275,000 units use FMS
at 375,000 units use DM

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