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A company is considering two suppliers for the purchase of a part needed for manufacturingParticulars are as follows: SUPPLIER A: Fixed Costs = $

A company is considering two suppliers for the purchase of a part needed for manufacturingParticulars are as follows: SUPPLIER A: Fixed Costs=\$9,000/year Variable Cost/Unit=\$2 SUPPLIER B: Fixed Costs $ 3,000/ year Variable Cost/Unit=\$515)15) Refer to the instruction above. For an annual volume of 3,000 units, which supplier should be chosen? A ) Supplier A BSupplier B Either Supplier A or Supplier B , because costs are the same for either option at 3,000 units D) Can't be determined with information given 16)16) Front offices typically emphasize: A) top quality and low cost operations. B) low cost operations and on-time delivery. top quality and customization . D) on-time delivery and standardization. 17)17) Which of the following is sometimes called mass production? A ) large batch process with make-to-order strategy B ) small batch process with assemble- to-order strategy job process with make-to- stock strategy D ) line process with make-to-stock strategy 18)18) A company is interested in monitoring the variability in the weight of the fertilizer bags it produces . An appropriate control chart would be: A ) an chart. - x B) a p-chart. C) a c-chart. D ) an R- chart. 19)19) A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard deviation of 0.5. The design engineers have established an upper specification limit of 22 and a lower specification limit of 18. What is the process capability index? A )1.46 B )1.20 C )1.66D )1.3320)20) When errors have been made while producing a product such that the item must be discarded , the resultant cost is an example of A ) external failure cost. B ) internal failure cost. prevention cost. D ) appraisal cost.

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