Question: question help saffronsaffron industries manufactures iphone case covers ruth romeruth...
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
in warehousing expenses and
in spoilage costs. Adopting lean production will require several one-time up-front expenditures:
$ 27 comma 000$27,000
for an employee training program,
to streamline the plant's production process, and
to identify suppliers that will guarantee zero defects andon-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?