General-purpose equipment and flexible manufacturing system

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Reference no: EM1376810

Meile Machine Shop Inc has a 1-year agreement for the production of 200,000 gear housings for a new off-road vehicle. Owner Larry Meile hopes the agreement will be extended and the volume increased next year. Meile has established costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS) and expensive however efficient, dedicated machine (DM).

Reference no: EM1376810

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