A Company Would Subordinate All Bottleneck Production to Non-Bottleneck Machines

question 105

Multiple Choice

A company would subordinate all bottleneck production to non-bottleneck machines when

• A)the bottleneck resource was temporarily unused.
• B)setup time on the non-bottleneck machine is higher than on the bottleneck machine.
• C)setup time on the non-bottleneck machine is less than on the bottleneck machine.
• D)it intends to increase throughput contribution.
• E)it wants to produce at least a minimum buffer inventory.

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Definitions:

Payments Occur

Indicates the instances or periods at which monetary transactions or installments are made.

Perpetuities

Financial instruments that provide an endless stream of equal payments with no expiration date.

Equal Payments

Regular and identical payments made over a specified period, often found in loan agreements or installment plans.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.