Reference no: EM131698227

1) Assume you are on the marginal case curve…if the desired throughput for the operation is a minimum of 450 units and customers need the product in no longer than 3 days, you could deliver these results by:

Reduce WIP to 100 units

Reducing WIP to 1500 units

Increasing WIP to 2800 units

None of the above

2) If the operation had no variability, it could achieve a TH of 800 units and a cycle time of less than 0.5.

True

False

3) In the chart above, one can see that the operation:   

Has too much WIP and long cycle times

Needs more WIP and is starving the bottleneck

Has exactly the right amount of WIP

4) If the bottleneck rate for a production line is 10 parts per hour and the raw process time for the production line is 7 hours, the critical WIP for the line is:

10 parts

32 parts

70 parts

5) If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization:

True

False