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:

Settling

The process of resolving a dispute or legal case by mutual agreement between the parties involved, often without admitting guilt or liability.

Corporate Reputation

How a company (or organization) is perceived by its key stakeholders.

Habitat for Humanity

An international nonprofit organization that helps families build and improve places to call home.

Initiative

The ability to assess and initiate things independently, often to bring about change or innovations.