Cranston Corporation Makes Four Products in a Single Facility

question 4

Multiple Choice

Cranston Corporation makes four products in a single facility. Data concerning these products appear below: The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines.How many minutes of milling machine time would be required to satisfy demand for all four products?

• A) 11,000
• B) 28,200
• C) 23,500
• D) 31,400

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Definitions:

Cycle Inventory

Inventory that turns over regularly in the course of business operations, representing the portion of inventory intended to meet normal demand.

Supply Chain

The network between a company and its suppliers to produce and distribute a specific product to the final buyer.

Cycle Inventory

Inventory maintained to cater to the expected demand of customers over a given cycle time, effectively acting as a buffer to ensure smooth operations.

Material Cost

The cost associated with the raw materials and components required for the manufacturing of a product.