Should the manager invest in the rfid system

Assignment Help Microeconomics

Reference no: EM132162228

Question - A grocery distribution center is considering whether to invest in RFID or bar code technology to track its inventory within the warehouse and truck loading operations. The useful life of the RFID and bar code devices is projected to be 5 years with minimal or zero salvage value. The bar code investment cost is $100,000 and can be expected to save at least $50,000 in product theft and lost items annually. The RFID system is estimated to cost $200,000 and will save $30,000 the first year, with an increase of $15,000 annually after the first year. For a 5% MARR, should the manager invest in the RFID system or the bar code system? Analyze incrementally using rate of return. Contributed by Oliver Hedgepeth, University of Alaska Anchorage.

Reference no: EM132162228

Questions Cloud

Low introductory price to build market share : In employing a low cost provider strategy a company must do better job than rivals of cost effectively managing internal activities and or it must find

Role of the coding specialist and characteristics : As a future HIM leader, what are some key takeaways regarding the role of the coding specialist and characteristics that you will look for in future staff

Organisational policy and legal requirements : Explain why it is necessary that an organisation ensures that selection procedures are conducted in accordance with organisational policy and legal requirements

New tasks after the department merger : Each day, she makes a list of the new tasks, prioritize tasks based on the urgency of completion, and schedules a time to complete each one.

Should the manager invest in the rfid system : For a 5% MARR, should the manager invest in the RFID system or the bar code system? Analyze incrementally using rate of return

How does the organization motivate its employees : How does the organization motivate its employees? Describe any programs or methods they use to motivate workers.

Discuss various media representations of psychopathology : For this discussion, you will enter into a dialogue on another ongoing controversy and contemporary issue regarding abnormal psychology.

Changing business and clinical environments : in what ways do new systems help healthcare organizations adapt to their changing business and clinical environments?

Research online social networking tools and applications : Research online social networking tools and applications using your textbook, the Internet, and the Argosy University online library resources.

User Account

All Pages