Suppose a resource has setup times and a setup time must be incurred each time the resource
Question:
Suppose a resource has setup times and a setup time must be incurred each time the resource switches production to a different product. Requiring the resource to make a new product (that requires its own setup) is likely to have what effect on the process?
a. Inventory for existing products remains the same, but the process must now carry inventory of the new product.
b. Inventory of all products is likely to increase.
c. Inventory of existing products decreases even though the process must now carry inventory of the new product.
d. Inventory of products with short setup times will decrease, while inventory of products with long setup times will increase.
Step by Step Answer:
Operations Management
ISBN: 9781260547610
2nd International Edition
Authors: Gerard Cachon, Christian Terwiesch