Production of a widget is currently a two-stage process

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You are the manager of a widget factory. Production of a widget is currently a two-stage process. The first stage (cutting and planing) takes 3 minutes per unit of input. The output of the first stage is then finished in the second stage, which takes 4 minutes. Assume demand is very high, and all of production can be sold at a margin (over costs) of $3.00 per unit. Sam the supervisor is proposing an upgrade to an NC (numerical control) machine that can flexibly do all these tasks (cutting, planing and finishing); moreover, this machine will take just 5 minutes to produce one unit of a widget. Discuss whether or not you would accept Sam’s proposal. Be sure to carefully explain why, in no more than 50 words.

Reference no: EM131030965

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