As set up times are negligible, we can reduce our lot sizes significantly. Benefits of small lot sizes is smooth production high quality, more flexibility, & reduced Inventory levels.
Therefore Option e is correct answer, as it uses smallest possible lot size. As All other options use big lot sizes, they are not utilising power of negligible set up time.
Assume a company needs to produce 60 units of product A and 30 units of product...
Assume a company needs to produce 60 units of product A and 30 units of product B each day. The firm operates using Lean practices. Also assume the firm has reduced setup times to negligible values. Which of the following would be the best strategy for the company to follow to produce these units? Select one: O a. 30 units of B, then 60 units of A O b. 30 units of A, then 30 units of B, then 30...
Assume a company needs to produce 60 units of product A and 30 units of product B each day. The firm operates using Lean practices. Also assume the firm has reduced setup times to negligible values. Which of the following would be the best strategy for the company to follow to produce these units? Select one: O a. 2 units of A, 1 unit of B, 2 units of A, 1 unit of B, and so on until all units...
Which of the following is the best example of a non-value adding activity? Select one: a. the storage of inventory b. cleaning and organizing a workspace c. assembly of component parts into a finished product d. fabricating a component part for later assembly e. a worker improving his/her skill set while a machine is performing a task Assume a company needs to produce 60 units of product A and 30 units of product B each day. The firm operates using...
1. Assume that a company takes 10,000 hours to produce 50,000 units of a product. What is the velocity for the company? a.2 units per hour b.3.5 units per hour c.5 units per hour d.2.5 units per hour e.1 unit per hour 2. The activity driver for the shipping activity of Withstand Inc. is the number of orders shipped. Product A uses 30 orders, and Product B uses 70 orders. Calculate the consumption ratios for each product. (Note: Round answer...
Goshford Company produces a single product and has capacity to produce 185,000 units per month. Costs to produce its current sales of 148,000 units follow. The regular selling price of the product is $148 per unit. Management is approached by a new customer who wants to purchase 37,000 units of the product for $80.10 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Product G Product B 120 72 Selling price per unit Variable costs per unit $ 90 30 Contribution margin per unit $ 60 $ 48 Machine hours to produce 1 unit Maximum unit sales per month 0.4 hours 1.0 hours 600 units 200 units The company presently operates the machine for a single eight-hour shift for 22...
Goshford Company produces a single product and has capacity to produce 170,000 units per month. Costs to produce its current sales of 136,000 units follow. The regular selling price of the product is $146 per unit. Management is approached by a new customer who wants to purchase 34,000 units of the product for $80.10 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G Product B Selling price per unit $ 90 $ 120 Variable costs per unit 30 72 Contribution margin per unit $ 60 $ 48 Machine hours to produce 1 unit 0.4 hours 1.0 hours Maximum unit sales per month 600 units 200 units The company presently operates the machine for a single eight-hour...
Goshford Company produces a single product and has capacity to produce 180,000 units per month. Costs to produce its current sales of 144,000 units follow. The regular selling price of the product is $144 per unit. Management is approached by a new customer who wants to purchase 36,000 units of the product for $108 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead, and no additional fixed selling and administrative expenses. The customer is...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...