Below is the calculation of the cost for different units -
Below is the range answer -
Range | Process | Reason |
0-2000 | R | Capacity for R is 2000 max |
2000-3000 | P | |
3000-infinite | Q |
For the expected demand range 2800 to 5500 units, we should chose Process Q as from above it is clear that cost of Q is lowest as soon as demand crosses 3000.
Another manager wants to evaluate an internal process that would be used to produce the new produ...
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