Question
Consider a job shop currently dedicated to two one-time customer orders. Job 1 takes 5 days to process and job 2 takes 8 days. The
Consider a job shop currently dedicated to two one-time customer orders. Job 1 takes 5 days to process and job 2 takes 8 days. The company paid the materials for both jobs 2 day after the start of processing. The customer for job 1 pays the immediately upon the completion of the job, while customer for job 2 pays 1 day before the completion of the job. The cost and revenue for the jobs are listed below.
Job 1 | Job 2 | |
Processing time | 5 | 8 |
Time to pay | 2 | 2 |
Amount to pay | $2 | $5 |
Time to receive | 0 | -1 |
Amount to receive | $4 | $8 |
When job 1 is processed before job 2, the cash gradient is:
Below 0.5
0.51 0.60
0.61 0.70
0.71 0.80
0.81 0.90
0.91 1.00
1.01 1.10
1.11 1.20
1.21 1.30
Above 1.3
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