Reference no: EM132245825

1. You operate a company that produces artificial Christmas trees (among other products). You are able to produce this product at a constant rate throughout the year and it is cost-effective for you to do so. Unfortunately, this product does not sell at a constant rate throughout the year. The majority of your sales for this product occur between November 1 and December 23 of each year. Therefore, as you produce the product, you consistently build up inventory that you warehouse and then sell at the end of the year.

This is an example of warehousing for what purpose?

Quick access to supply

Seasonal production

Seasonal demand

Benefits of large scale production

2. A company is expanding production and is searching for a location where they can build a new facility. In evaluating potential locations, they have decided that they need to consider the following:

Total labor cost at the new facility

Total production cost at the new facility

Be within a certain radius from one of their existing inventory warehouses

Be able to build a production facility that meets a minimum level of capacity

Which of the following best describes the objective of this facility location project?

o A filtering process where requirements/restrictions will produce a list of viable options

o A cost analysis searching for minimum cost

o A cost analysis searching for minimum cost that is restricted by requirements which may eliminate low cost options