See Cornerstone Exercise 20-4. Fisher Company has three sequential processes: cutting, welding, and assembly. Assume that the optimal mix is: Component A = 0 units per week; Component B = 30 units per week. Demand is uniformly spread out over the five-day work week. Fisher requires a 2.5-day buffer.

Required:

1. Identify the drummer, the rate of production, the time buffer, and the rope.

2. Illustrate the DBR structure of Fisher Company.

3. Whatifthe Welding Department was allowed or encouraged to produce at capacity?

What effect will this have on work-in-process inventories?

LO1