Question

Answer is not complete. Suppose a resource has setup times and a setup time must be incurred each time the resource switches production to a different product. Requiring the resource to make a new product (which requires its own setup) is likely to have what effect on the process? °Inventory for existing products remains the same but the process must now carry inventory of the new product. OInventory of all products is likely to increase. ·Inventory of existing products decreases even though the process must now carry inventory of the new product. °Inventory of products with short setup times will decrease while inventory of products with long setup times will increase

Needing the correct answer to both questions. Thanks!

Answer 1

1) Inventory of all products is likely to increase.

with the resource making being required to make a new product, the cycle time will increase and hence the inventory of all products is likely to increase.  

2) Reduce the setup time for a resource

single minute exchange of die is a system that setup costs and hence the lot sizes.