Options for acquiring a machined part


Problem: A manufacturer has identified the options for acquiring a machined part. It can make the part on a numerically controlled lathe for $150 per unit (including materials.) It can make the part on a standard lathe for $250 per unit It can make the part on a machining center for $50 per unit (also including materials.) The manufacturer can acquire a standard lathe for $10,000. It could acquire a numerically controlled lathe for $100,000. A machining center would cost $350,000. It has also found that it can purchase the part for $350 per unit. Draw a graph. Develop the equations. Show your work.

If the quantity required is less than ______, do the following:________. If the quantity needed is between _______ and ______, use the _________. If the quantity needed is more than ______ but less than _______, use the __________. If the quantity needed was greater than ______, use the ___________

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Supply Chain Management: Options for acquiring a machined part
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