An industrial firm is considering whether to adopt palletization for handling materials. The following data...
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An industrial firm is considering whether to adopt palletization for handling materials. The following data have been collected: Labor costs will be reduced by 10% and breakage (damage) by 15% with the use of pallets. Breakage for the last 3 years was $50,000,$53,000, and $49,000, respectively. The firm operates 8hr/ day for 320 days a year, and the current total labor costs is $30/hr. The payback period (yr) if the pallets are purchased is most nearly
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