Answer the following questions using the information below:
Tri-State Manufacturing expects to spend $800,000 in 2012 in appraisal costs if it does not change its incoming materials inspection method. If it decides to implement a new receiving method, it will save $80,000 in fixed appraisal costs and variable costs of $0.40 per unit of finished product. The new method involves $120,000 in training costs and an additional $160,000 in annual equipment rental. It takes two units of material for each finished product.
Internal failure costs average $160 per failed unit of finished goods. During 2011, 5% of all completed items had to be reworked. External failure costs average $400 per failed unit. The company's average external failures are 1% of units sold. The company carries no ending inventories, because all jobs are on a per order basis and a just-in-time inventory ordering method is used.
-The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as:
A) manufacturing lead time
B) bottleneck
C) customer-response time
D) a time driver
Correct Answer:
Verified
Q94: Answer the following questions using the information
Q95: Customer-response time is a measure of how
Q98: Two important drivers of time are limited
Q100: Little Dog Unlimited makes small motorcycles. The
Q102: Producing more nonbottleneck output:
A)creates more inventory, but
Q117: Answer the following questions using the information
Q118: Manufacturing lead time is the sum of
Q120: Manufacturing Cycle Efficiency (MCE) = Value-added Manufacturing
Q137: Answer the following questions using the information
Q138: Answer the following questions using the information
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents