Chapter 3: Q12PE (page 398)
A technique that is useful for screening potential locations for services.
Regression analysis is used for screening potential locations for services.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Question: A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on an average of 0.04. By inspecting all items, the inspector can remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is \(9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of \)10 each when they are detected in final product testing.
One product that Staples sells a lot of is copy paper. According to Lee’s Uncertainty Framework, what supply chain strategy is appropriate for this product?
When a customer allows the supplier to manage inventory policy for an item or group of items.
Meritor is so pleased with the outcome from previous suggestions that the consultants are invited back for more work. The consultants now suggest a more complete robotic automation of the making of muffler assemblies and also a reduction in container size to eight per container. Meritor implements these suggestions and the result is that the muffler assembly fabrication cell now averages approximately 32 assemblies per hour, and the catalytic converter assembly cell can now respond to an order for a batch of catalytic converters in one hour. The safety stock remains at 12.5 percent. How many kanban cards are needed?
Question: What is the cost to inspect each unit?
What do you think about this solution?
We value your feedback to improve our textbook solutions.
