In a Work Center, Machine a Has a 10-Minute Set-Up

question 29

Multiple Choice

In a work center, machine A has a 10-minute set-up time per batch and a 2-minute per unit run time.Machine B performs the identical function but has a set-up time of 30 minutes and a 1-minute run time per unit.The work center makes products in batches ranging from 1 unit to 100 units.Assuming capacity is not a limitation on either machine, in order to minimize the total processing time, on which batches should machine B be used?

• A)All batches should be run on machine B.
• B)Batches of more than 20 units should be run on machine B.
• C)Batches of fewer than 80 units should be run on machine B.
• D)Batches with up to 50 units should be run on machine B.
• E)No batches should be run on machine B.

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Definitions:

Current Ratio

A financial ratio that measures the number of times the firm can cover its current liabilities with its current assets.

Current Liabilities

A company's obligations or debts that are due within a year or within its operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business, whichever is longer.

Ratio of Debt

A financial metric that measures the amount of debt a company has compared to its assets or equity, indicating the financial leverage or risk.