Consider the Assembly Line Below

question 89

Multiple Choice

Consider the assembly line below. The three fabrication operations run in parallel, such that each batch of 20 units only needs to go through one of the three fabrication operations. After that, each batch needs to go through both assembly operations, which occur simultaneously (specifically, 10 components are made for each unit in the fabrication stage-some components are then assembled in the Assembly 1 area while others are assembled in the Assembly 2 area) . The units are packaged and made ready for shipment in the final stage. What is the bottleneck time per batch of this operation?

• A) 24 min.
• B) 8 min.
• C) 88 min.
• D) 34 min.
• E) 3 min.

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Definitions:

Operating Effectiveness

A measure of how well an organization is managing its core business functions to achieve its objectives efficiently and effectively.

Percentage Increase

The amount of increase in a value or quantity, expressed as a percentage of its original value.

Sales

The exchange of goods or services for money, recognized as revenue by businesses.

Receivables Turnover Ratio

A financial metric used to assess how effectively a company is managing its accounts receivable, calculated by dividing net credit sales by the average accounts receivable.