1. Currently, Product Acre in the low segment has MTBF of 16,000 hours. If MTBF is reduced to 14,000 hours, what would be the effect on material costs? a. Material costs would increase by $ 0.60 per unit b. Material costs would decrease by $ 0.60 per unit c. Material costs would increase by $ 0.30 per unit d. Material costs would decrease by $ 0.30 per unit
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1. Currently, Product Acre in the low segment has MTBF of 16,000 hours.
If MTBF is reduced to 14,000 hours, what would be the effect on material costs?
a. Material costs would increase by $ 0.60 per unit
b. Material costs would decrease by $ 0.60 per unit
c. Material costs would increase by $ 0.30 per unit
d. Material costs would decrease by $ 0.30 per unit
2. Given customer needs in the High Segment, which is best way to compete in that segment?
a. Source of Competitive Advantage should be Product/Service Differentiation
b. Source of Competitive Advantage should be Cost Leadership
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- How does product mix affect capacity planning?“How many dozen should I put in the proofer?” asked Elizabeth, the new baker at the Sands Cafeteria. Rami El‐Hussieny was the day shift operations manager, and, unfortunately, he did not know how to answer Elizabeth's question. What she wanted to know was simple enough: How many dozen rolls should be placed in the proofer in anticipation of the night's dinner business? The problem was that the frozen dinner roll dough used at the Sands Cafeteria needed to be proof for at least 2 hours prior to being baked for 15 minutes. If too many rolls were proofed, they would never be needed, but they would still have to be baked and made into bread dressing or even tossed out. If too few dozen were proofed and the night was busier than anticipated, they would run out of “Fresh Baked Rolls” (one of the restaurant's signature items), and Rami knew that the night manager would be really upset. It was a daily guess, and sometimes Rami missed the guess! He wondered if a prebaked roll with a shelf life…2.17 For the following data, calculate the number of workers required for level production and the resulting month-end inventories. Each worker can produce 14 units per day, and the desired ending inventory is 9000 units. Month Working Days Forecast Demand Planned Production Planned Inventory 11,500 1 2 3 4 Total 20 24 12 19 28,000 27,500 28,500 28,500