Table 1019
the Illinois Appliance Company Is Installing a Line to to Produce

question 170

Multiple Choice

Table 10.19
The Illinois Appliance Company is installing a line to produce a vacuum cleaner, and you, as the operations manager, are
responsible for designing the line. The line has to produce 30 units per hour. The work elements to be performed are as
follows, with the time needed and immediate predecessor(s) also shown.
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Work } \\\text { Element }\end{array} & \text { Time } ( \mathrm { sec } ) & \begin{array} { c } \text { Immediate } \\\text { Predecessor(s) }\end{array} \\\hline \text { A } & 55 & - - \\\text { B } & 45 & \text { A } \\\text { C } & 25 & \text { B } \\\text { D } & 20 & \text { B } \\\text { E } & 40 & \text { B } \\\text { F } & 50 & \text { D } \\\text { G } & 70 & \text { D } \\\text { H } & 45 & \text { F, G } \\\text { I } & 20 & \text { E } \\\text { J } & 80 & \text { H, I } \\\hline\end{array}$$
-Use the information in Table 10.19. What is the theoretical minimum number of stations?

• A) TM = 3 stations
• B) TM = 4 stations
• C) TM = 5 stations
• D) TM = 6 or more stations

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Definitions:

Net Sales

The amount of sales revenue left after returns, allowances for damaged or missing goods, and discounts are deducted.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing sales with average total assets.

Average Total Assets

A financial metric that represents the average value of all a company's assets over a specific period, often used to assess operational efficiency.

Associated Costs

Expenses directly linked to a specific project, department, or product, which can include materials, labor, and overhead.