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Question: question help saffronsaffron industries manufactures iphone case covers ruth romeruth...

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SaffronSaffron

Industries manufactures iPhone case covers.

Ruth RomeRuth Rome​,

the​ CEO, is trying to decide whether to adopt a lean thinking model. She expects that adopting lean production would save

$68,000

in warehousing expenses and

$37,600

in spoilage costs. Adopting lean production will require several​ one-time up-front​ expenditures:

$ 27 comma 000$27,000

for an employee training​ program,

$41,500

to streamline the​ plant's production​ process, and

$6,500

to identify suppliers that will guarantee zero defects and​on-time delivery.

1. What are the total costs of adopting lean​ production?

2. What are the total benefits of adopting lean​ production?

3. Should the company adopt lean​ production? Why or why​ not?

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