Consider a Three Sequentially Stepped Process Named as Process A

question 7

Multiple Choice

Consider a three sequentially stepped process named as Process A, Process B, and Process C. Input comes into Process A. Output from A goes into Process B. Output from B goes into Process C. Output of C is the final output. Suppose that it takes 2 minutes per unit in Process A, 3 minutes per unit in Process B and 1 minute per unit in Process C. Suppose further that Process A receives input at the rate of 30 per hour. Where would you place a buffer?

• A) in front of Process A
• B) in front of Process B
• C) in front of Process C
• D) in front of both Process B and Process C
• E) None of these choices are correct.

---

Definitions:

Responsibility Centres

Units or departments within an organization, each with specific responsibilities and performance metrics to manage financial outcomes.

Imputed Interest Rate

The estimated rate of interest, often applied in situations where no actual interest rate is specified in a financial transaction.

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.

Invested Capital

Represents the total amount of money invested into a business by its owners and creditors, used for ongoing business operations.