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.

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