Question

Wie Industries manufactures iPhone covers Rose May, the CEO, Wyng to decide whether toptalan hiking me the wechs that weging en production would save $1.000 inwoning prod 2.000 polage ces Adopting for production will require alene me up front experthures: $12.000 for an employee training program, 7.000 to roamine the plant production procedentily she war and on time every Read the current Requirement. What are the total costs of adopting for production The two testing a production we Requirement? What are the benefits of adopting lean production? The water and lean production ere Requirement to the company ten production Why why not? os The company

Answer 1

Answer:

1) Computation of total cost of adopting the lean production cost

Total lean production cost = trainning cost+cost of supplier identification+cost of streamline plant for production

Total lean production cost = 12000+7750+67000

total lean production cost = 86750

2) Total Benefit = saving in warehouse exp+save in spoilage cost

total benefit = 76000+41000 = 117000

3) net cost/benefit = Total benefit-total lean production cost

Net cost / benefit = 117000-86750 = 30250

therefore company should adopt the lean production model

there is the benefit over cost by $ 30250

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