Reference no: EM132856205
1. Design capacity refers to the maximum amount that a production facility can produce.
2. The variable cost per unit is higher for job shop production than assembly line production.
3. How well the product meets the design specifications is called the "quality of design."
4. Quality of conformance will greatly affect the selling price of product in the marketplace.
5. An 80% learning curve represents a higher learning rate than a 70% learning curve.
6. In contrast to an "efficient supply chain", a "responsive supply chain" is designed for firms to compete primarily on new product introduction, fast delivery speed, customization, and high performance design quality.
7. When using simple moving average forecasting model with a growth trend demand, the forecast will always lag behind the actual demand.
8. Holding costs include costs for handling, insurance, theft, and cost of production set up.
9. Compared to the basic EOQ model Q* = (2DS/H)½, the inclusion of a shortage cost into the model (as a part of holding cost) has the effect of making Q* larger.
10. Increasing released orders is one important step to improve shop flow time performance.