A Company Wants to Buy a Moulding Machine That Can

question 172

Essay

A Company wants to buy a moulding machine that can be integrated into its computerized manufacturing process.It has received three bids for the machine and related manufacturer's specifications.The bids range from $3,500,000 to $3,550,000.The estimated annual savings of the machines range from $260,000 to $270,000.The payback periods are almost identical and the net present values are all within $8,000 of each other.The president just doesn't know what to do about which vendor to choose; all the selection criteria are so close together.Required:
What suggestions do you have for the president?

Acknowledge the importance of growth-need strength and its relation to job enrichment.

Understand the role of autonomy in job design and its effects on employee satisfaction.

Assess the importance of technology in job design and the development of techno-human systems.

Understand different alternative work arrangements and their characteristics.

---

Definitions:

Final Good

A product that is completed and ready for consumption without requiring further processing or manufacturing, contrasting with intermediate goods used in production.

Marginal Product

The additional output resulting from the use of one more unit of a variable input, holding all other inputs constant.

Factor of Production

An input used in the manufacturing of goods or services, typically categorized into land, labor, capital, and entrepreneurship.

Total Income

The sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings received by an individual or organization.