An Assembly Line Has to Perform 10 Work Elements, Whose

question 145

Multiple Choice

An assembly line has to perform 10 work elements, whose time requirements follow below. An operations analyst has found a solution using some heuristics. The solution follows below. Solution $$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Work } \\\text { Elements }\end{array} & \text { Time (sec) } & \text { Station } & \begin{array} { l } \text { Work } \\\text { Elements } \\\text { Assigned }\end{array} \\\hline \text { A } & 45 & 1 & \text { A, B, C } \\\text { B } & 30 & 2 & \text { D, E } \\\text { C } & 15 & 3 & \text { F, H } \\\text { D } & 30 & 4 & \text { G, I } \\\text { E } & 50 & 5 & \text { J } \\\text { F } & 40 & & \\\text { G } & 30 & & \\\text { H } & 30 & & \\\text { I } & 60 & & \\\text { J } & 80 & & \\\hline\end{array}$$ If the cycle time of the line is 90 seconds, what is the efficiency of the assembly line?

• A) less than 85%
• B) greater than 85% but less than 90%
• C) greater than 90% but less than 95%
• D) greater than 95%

---

Definitions:

Economic Profits

Profits exceeding the total costs of production, including both explicit and implicit costs, representing gains above what could be earned in the next best alternative use of resources.

Pure Monopolist

A market participant who exclusively controls the supply of a particular good or service, without competition or substitute products.

ATC

Average Total Cost, which represents the per-unit cost of production, including both fixed and variable costs.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenue, reflecting the true economic performance of a company.