Solved: Operations and supply management, Supply Chain Management

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Operations and supply management

Problem:

Assume that you are offered a new piece of equipment for $10000. The equipment will produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been 2000 units per year. Your current equipment is fully depreciated and can produce the 2000 units per year but at a margin of only $4.00 per unit. Should you purchase the new equipment? Under what conditions?

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Supply Chain Management: Operations and supply management

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Supply Chain Management: Operations and supply management

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