Should the firm lease the new inspection system

Assignment Help Operation Management
Reference no: EM131677884

A manager of Paris Manufacturing, which produces computer hard drives, is planning to lease a new automated inspection system. The manager believes the new system will be more accurate than the current manual inspection process. The firm has had problems with hard drive defects in the past and the automated system should help catch these defects before the drives are shipped to the final assembly manufacturer. The relevant information follows. Current manual inspection system Annual fixed cost = $35,000 Inspection variable cost per unit = $15 per unit New automated inspection system Annual fixed cost = $ 165,000 Inspection variable cost per unit = $ 0.55 Suppose annual demand is 8,000 units. Should the firm lease the new inspection system ?

Reference no: EM131677884

Questions Cloud

Why do organizations use portfolio management : Why do organizations use portfolio management? What will be some leadership trends in 2020?
The greatest impact of international business in the future : What industries do you think will feel the greatest impact of international business in the future?
Walmart intends to improve the customer satisfaction : Walmart intends to improve the customer satisfaction through the addition of a self-checkout station to one of its stores.
Consider the impact of truth-telling and lying : Consider the impact of truth-telling and lying and your responsibility to your employees and the organization as a manager in this situation.
Should the firm lease the new inspection system : which produces computer hard drives, is planning to lease a new automated inspection system. Should the firm lease the new inspection system ?
Investigate the modified algorithm makes tt-entails : Write a recursive algorithm PL-True (s, m) that returns true if and only if the sentence s is true in the model m.
Modern technology in each of these service industries : Describe at least one application of modern technology in each of these service industries
Explore the options for defending the suit in court : As the hospital administrator, discuss and explore options for defending suit in court, going to arbitration, going to mediation, or structuring settlement.
Can you prove that the unicorn is mythical : Given the following, can you prove that the unicorn is mythical? How about magical? Horned? If the unicorn is mythical, then it is immortal.

Reviews

Write a Review

Operation Management Questions & Answers

  What role does forecasting play in the supply chain

What role does forecasting play in the supply chain of retailers or wholesalers with inventory? Please give some examples of products that display seasonality demand. What data would you use to forecast the next year’s sales?

  Consider the equipment rental process described

Consider the equipment rental process described in Example 1.1 and the corresponding issues documented in Example 6.4. Apply the redesign heuristics in order to address the issues documented in Example 6.4. Capture the resulting to-be model in BPMN.

  Optimal protection level for the high fare tickets

a. What is the optimal protection level for the high fare tickets? b. What is the expected revenue (in thousands) from high fare passengers when abooking limit of 200 is selected for the low fare tickets?

  Has the researcher communicated clearly and fully

Did the article make an original contribution to the existing body of knowledge? Was the theoretical framework for the study adequate and appropriate?

  Assess the overall effectiveness of the model

Assess the overall effectiveness of the model your team selected to both choose and implement your innovation. What were its strengths and weaknesses?

  Expensive turbine generators to power utility companies

You work for Siemens Power Generation Systems and are responsible for the sale of large, expensive turbine generators to power utility companies.

  Forecasting and capacity management 1 complete exercise 21

1 complete exercise 2.1. in the excel document below you may use sheet 1 quotmoving averages templatequot which

  What are the factors considered in making

What are the factors considered in making this determination?

  Gibson labor hour efficiency

Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 2.5 hours (I.e.,"standard output" = 0.4 fenders per hour) and is willing to pay Gibson $50 per hour for labor party. Gi..

  Which technique of social influence do you use on others

Describe the two types of social influence. Give a personal example of how you have been influenced by each type. Which technique of social influence is most effective when used on you? Explain using an example. Which technique of social influence do..

  Discuss the pricing contained in the response

A prospective seller, Seller XYZ, calls you to discuss the pricing contained in the response they previously provided to you. Seller XYZ is also a large customer of your company, and has been a long-time supplier to your company with superb performan..

  Comparison between portes notion of importance of careful

Draw a comparison between Portes notion of the importance of careful and sustained analysis of the social context and the red flags of poor decisions.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd