Jerry Allison Is in Charge of Production for a Small

question 13

Multiple Choice

Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year.
-Use the information in Scenario D.1.If Jerry chooses to produce batches dictated by the economic production lot size (ELS) model,how many days elapse between the start of consecutive production runs (what is the time between runs or TBO) ?

• A) Fewer than or equal to 8 days
• B) Greater than 8 days but fewer than or equal to 10 days
• C) Greater than 10 days but fewer than or equal to 12 days
• D) Greater than 12 days

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Definitions:

Difficult To Administer

Describes processes, systems, or regulations that are complex or cumbersome to manage, often due to intricacy, multitude of components, or lack of clarity.

Farsighted Organizations

Organizations that prioritize long-term goals and outcomes over immediate gains, often incorporating strategic planning and forward-thinking.

Strategic Farsightedness

The ability of an organization to look beyond immediate challenges and plan for long-term opportunities and risks.

Flexible Structure

An organizational framework that can quickly adapt to changes in the environment, allowing for innovation, scalability, and responsiveness.