Factory X Is Trying to Use Level Use Scheduling

question 117

Multiple Choice

Factory X is trying to use level use scheduling. If their first target were to cut the current lot size in half, by what proportion must setup cost change?

• A) Setup cost must be cut to one fourth its current value.
• B) Setup cost must also be cut in half from its current value.
• C) Setup cost must double from its current value.
• D) cannot be determined
• E) Setup cost must be cut one third its current value.

---

Definitions:

Inventory Requirements

The specific amount and type of stock or materials a business needs to maintain to fulfill customer orders efficiently.

Personnel Levels

The number of staff members employed in a business or organization, which can be adjusted based on workload and operational requirements.

Inventory Decisions

The process of determining the optimal level and timing of inventory to minimize costs and meet demand.

Aluminum Manufacturer

A company specialized in producing aluminum through the processing of raw materials, often involving the bauxite ore.