Answer the Following Question(s)using the Information Below

question 106

Multiple Choice

Answer the following question(s) using the information below:
The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand.The tool crib has a variable demand.Historically, its demand has ranged from 150 to 250 small tools per day with an average of 200.Diane, the tool crib attendant, works eight hours a day, five days a week.Each order is for one small tool and each small tool takes Diane 2 minutes to retrieve from the bins.
-What is the tool crib cycle time for an order?

• A)2 minutes per tool
• B)3 minutes per tool
• C)5 minutes per tool
• D)7 minutes per tool
• E)4 minutes per tool

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Definitions:

Reference Point

A basis or standard for evaluation, comparison, or judgment.

Original Endowment

The initial allocation of income, wealth, resources, or goods that an individual or economy possesses before engaging in trade or production activities.

Behavioral Economics

A field of study blending economics and psychology to explore how people make decisions, often deviating from rationality.

Constrained Maximization

The process of finding the maximum value of a function subject to certain constraints, often used in economics and optimization problems.