A Company Needs to Rebalance a Product Layout for Producing

question 54

Multiple Choice

A company needs to rebalance a product layout for producing new plastic license plates. They plan to use the assembly line six hours in order to meet projected demand of 2,160 license plates each day. The following table describes the tasks involved in the production of this product: $$\begin{array} { l l l } \text { Task } & \text { Time (secs) } & \text { Immediate Predecessor } \\\hline \mathrm { a } & 3 & \text { none } \\\mathrm { b } & 4 & \text { none } \\\mathrm { c } & 5 & \mathrm { a } , \mathrm { b } \\\mathrm { d } & 7 & \text { none } \\\mathrm { e } & 9 & \mathrm { c } , \mathrm { d }\end{array}$$ For output to equal projected demand, what will be the efficiency of the assembly line that uses the minimum number of workstations?

• A) 0.0 percent
• B) 6.7 percent
• C) 70.0 percent
• D) 93.3 percent
• E) 100 percent

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Definitions:

Anti-Trust Laws

Legislation aimed at promoting competition and preventing monopolies by regulating anti-competitive practices.

Freedom of Contract

The principle that individuals have the liberty to enter into agreements as they choose without unjust government interference.

Noncompetition Clause

A provision in a contract that prohibits one party from competing with another party for a certain period of time and within a certain geographic area.

Legitimate Business Purpose

A rational, honest intention or objective behind a business action or decision, often considered in legal contexts to validate transactions.