Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 7, Problem 9CQ
Summary Introduction
To determine: The impact on the average inventory in the process.
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Students have asked these similar questions
C&A Printing takes 10 seconds to print a page in color, but after 500 pages, the printer must be cooled down for 15 minutes. No
pages can be printed while the printer is cooling down. C&A's demand rate is 3 pages per minute. What is the smallest batch size to
ensure the process is demand-constrained?
O
A) 64
B) 3
C) 500
D) 90
A finished goods inventory on average contains 10,000 units. Demand averages 1,500 units per week. Given that the process runs 50 weeks a year, what is the expected inventory turn for the inventory? Assume that each item held in inventory is valued at about the same amount.
Break-even point is:
adding processes to meet the point of changing product demands
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the point in dollars or units at which cost equals revenue
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Chapter 7 Solutions
Operations Management
Ch. 7 - Prob. 1CQCh. 7 - Prob. 2CQCh. 7 - Prob. 3CQCh. 7 - Prob. 4CQCh. 7 - Prob. 5CQCh. 7 - Prob. 6CQCh. 7 - Prob. 7CQCh. 7 - Prob. 8CQCh. 7 - Prob. 9CQCh. 7 - Prob. 10CQ
Ch. 7 - Prob. 11CQCh. 7 - Prob. 12CQCh. 7 - Prob. 13CQCh. 7 - Prob. 14CQCh. 7 - Prob. 1PACh. 7 - Prob. 2PACh. 7 - Prob. 3PACh. 7 - Prob. 4PACh. 7 - Sarahs Organic Soap Company makes four kinds of...Ch. 7 - Prob. 6PACh. 7 - Prob. 7PACh. 7 - Bruno Fruscalzo decided to set up a small...Ch. 7 - Prob. 9PACh. 7 - Prob. 10PACh. 7 - Prob. 1CCh. 7 - Prob. 2CCh. 7 - Prob. 3CCh. 7 - Prob. 4C
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- The term "process view of organizations" refers to the fact that a process includes manufacturing and services only. a process includes manufacturing only. a process includes any part of organization including accounts payables and receivables. a process includes services only. None of these answer choicesarrow_forwardConsider the system composed of four processes linked by a conveyor belt. There is no storage between these processes pictured below and market demand of 30 units per hour drives the conveyor beit. Assume that no defective units are made. Which statement is best? (Hint: Little's Law) Process 1 Process 2 Process 3 Process 4 Inventory 4 units Inventory 5 units Inventory 6 units Inventory = 7 units The flow time for a unit through the entire process is 33 minutes. Resources B and D The flow time for a unit through the entire process is 44 minutes. O The flow time for a unit through the entire process is 22 minutes. O The fiow rate through the entire process is 160 units per hour. O0 00arrow_forwardWhich of the following is not a feature of a process production system? Low product flexibility High production volume Repetitive production Hogeneous productsarrow_forward
- . Aquatica makes underwater camera housings for divers. The process begins with a solid rectangular block of aluminum that is used to make a single housing. A computer numerically controlled (CNC) machine drills into the block to make the metal “frame” of the housing. Each block requires 15 minutes of drilling. The frame is then chemically treated in a series of baths. There is ample capacity in the treating stage. Finally, a worker must manually attach the various buttons and components to the metal housing. This assembly takes 120 minutes per housing per worker and Aquatica has 6 workers trained to do this task. The CNC machine requires a 30-minute setup time before the production of a batch can begin. a. If the CNC machine produces 14 housings between setups, what would be its capacity (in housings per hour)? b. Assuming the process is supply-constrained, what is the utilization (as a number between 0 and 1) of the CNC machine if it operates in batches of 14 housings? c. Assuming…arrow_forwardAtlanta Manufacturing Company produces products W, X, Y, and Z through a joint process. The joint costs amount to $250,000. Product Units Produced Sales Value at Split-Off Additional Costs of Processing Sales Value After Processing W 750 $10,000 $2,500 $15,000 X 1,500 $30,000 $3,000 $35,000 Y 1,000 $20,000 $4,000 $25,000 Z 1,500 $40,000 $6,000 $45,000 If W is processed further, profits of W will: 1) Increase by $2,500 2) Increase by $12,500 3) Decrease by $23,000 4) Increase by $5,000arrow_forwardIf the cost of goods manufactured is higher than the cost of goods sold, which of the following is correct? A. Finished Goods Inventory has decreased. B. Work in Process Inventory has decreased C. Finished Goods Inventory has increased. D. Work in Process Inventory has increased.arrow_forward
- A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Process 1 Process 2 Production Rate 35 parts per hour 15 parts per hour Daily production time 4 hours per day 7 hours per day Percent of Parts Rejected 20% 9% Assume that the daily demand for hubs allows all defect-free items to be sold. Additionally, defective hubs cannot be sold and their material cannot be recovered anymore. Find the process that minimizes the total cost per piece if each part is made from $4 worth of material. Both processes are fully automated, and the variable overhead cost is charges at $40 per hour.arrow_forward1. Output represents the final products from the production process and distributed to the customers. A. True B. Falsearrow_forwardThe recipe for a fruit smoothie requires 2 cups of fruit per 6 cups of yogurt to maintain a 1/3 ratio. While making the fruit smoothie, Suzy accidentally puts 3 cups of fruit into the pitcher. How many cups of yogurt should be put out n the pitcher to maintain the ratio of 1/3?arrow_forward
- A product requires four parts that are made on the same lathe. Call the parts A, B, C,and D. The product requires 1 unit of A, 2 of B, 4 of C, and 8 of D. Which of the following production cycles is most appropriate?a. A: 100, B: 100, C: 100, D: 100 c. A: 100, B: 150, C: 200, D: 400b. A: 101, B: 102, C: 104, D: 108 d. A: 100, B: 200, C: 400, D: 800arrow_forwardWhat is the relationship between the number of kanban cards in a process and theinventory level?a. There is no relationship between the two.b. There never can be more inventory in the process than what was authorized viakanban cards.c. The inventory of the process grows with the square root of the number of kanban cards.d. The inventory of the process can be reduced by adding more kanban cards.arrow_forwardWhat is the difference between a push system and a pull system?(a) A push system favors running a machine, even if there exists no demand for it.(b) In a pull system, the last resource is paced directly by demand.(c) Generally, there will be less inventory in a pull system.(d) All of the abovearrow_forward
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