A Manufacturing Plant Is Capable of Producing 10 Tons of Product

question 26

Multiple Choice

A manufacturing plant is capable of producing 10 tons of product per day when it runs three shifts with no breakdowns and plenty of raw materials. Over the past week, the plant has produced an average of 7.3 tons per day since the third shift has devoted much of their time to preventive maintenance. What is the capacity of the plant?

• A) 10 tons/day
• B) 7.3 tons/day
• C) 73%
• D) 137%

Analyze the trade-offs between supply chain efficiency and responsiveness.

Grasp the components of total logistics cost and how they relate to customer service.

Understand the goals of inventory and transportation cost minimization within the supply chain.

Learn about the use and benefits of vendor-managed inventory systems and quick response systems.

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Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.

Inferior Goods

Goods for which demand decreases as consumer income rises, in contrast to normal goods, where demand increases with higher incomes.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the sensitivity of consumers to price changes.

Quantity Supplied

The total amount of a specific good or service that is available to consumers at a given price point and time.