Organizations make decisions on a daily basis. Organizations must make decisions that are in tandem with their objectives, mission and vision. Most trading organizations are formed with the objective of making profits. In order to maximize profits businesses must maximize revenues, minimize costs or both. When faced with a decision concerning which manufacturing process to adopt, organizations must conduct a lead cost analysis to determine which alternative has a lower cost. The organization must also evaluate other non-cost factors that may influence their decision.
Smitheford Pharmaceuticals is an organization that intends to adopt new technology. However, it has two alternatives; a low technology option ...