The Jarvis Corporation Produces Bucket Loader Assemblies for the Tractor

question 46

Essay

The Jarvis Corporation produces bucket loader assemblies for the tractor industry. The product has a long term life expectancy. Jarvis has a traditional manufacturing and inventory system. Jarvis is considering the installation of a just-in-time inventory system to improve its cost structure. In doing a full study using its manufacturing engineering team as well as consulting with industry JIT experts and the main vendors and suppliers of the components Jarvis uses to manufacture the bucket loader assemblies, the following incremental cost-benefit relevant information is available for analysis:
The Jarvis cost of investment capital hurdle rate is 15%.
One time cost to rearrange the shop floor to create the manufacturing cell workstations is $275,000.
One time cost to retrain the existing workforce for the JIT required skills is $60,000.
Anticipated defect reduction is 40%. Currently there is a cost of quality defect assessment listed as $150,000 per year.
The setup time for each of the existing functions will be reduced by 67%. Currently the forecast for setup costs are $225,000 per year.
Jarvis will expect to save $200,000 per year in carrying costs as a result of having a lower inventory.
The suppliers will require a 15% premium over the current level of prices in order to position themselves to supply the material on a smaller and more frequent schedule. Currently the materials purchases are $1,500,000 per year.
Required:
Determine whether it is in the best interest of Jarvis Corporation to install a JIT system.

Explore the role of technology in delivering psychological treatments.

Grasp the modalities of therapy delivery and their specifics.

Recognize the significance of the transdiagnostic approach and its efficacy in treating psychological disorders.

Identify and classify various primate species, including distinguishing between hominoids, hominids, and anthropoids.

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Definitions:

Overtime Payments

Compensation paid to employees for hours worked in excess of their standard scheduled working hours, typically at a higher rate.

Information Technology

The use of computers, storage, networking, and other physical devices and infrastructure to create, process, store, secure, and exchange all forms of electronic data.

Hardware

Physical components and devices that make up a computer system, such as CPUs, hard drives, and RAM.

Software

A collection of data or computer instructions that tell the computer how to work, encompassing applications, scripts, and programs that run on a device.