Question

saffron industries manufacturers iphone case covers Ruth Rome the CEO is trying to decide wether to adopt a lean thinking model. She expects that adopting lean production would save $95,000 in warehousing expense and $39,200 in spoilahe costs. Adopting ñean prodcution will require several one time up front

expenditures: $ 27,000 for an employee training program $98,000 tp streamline the plants production process and $7500 to identify suppliers that will guarantee zero defect on time delivery

what are total cost pf adotong lean production

the question has more please provide full response

Answer 1

Solutions computation of total cost of adopting production cost & the lean Total lean production cost = training cost & cost of supplier identification + cost of streamline plant for production, = 27000 + 7500 + 98000 = $132 soo The total lean production cost is $132500