Drum-Buffer-Rope

Fisher Company produces two types of components for airplanes: A and B, with unit contribution margins of $400 and $600, respectively. The components pass through three sequential processes: cutting, welding, and assembly. Data pertaining to these processes and market demand are given below (weekly data).

Fisher Company has three sequential processes: cutting, welding, and assembly. Assume that the optimal mix is Component A = 0 units per week; and 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 following:

The drummer.

- Select your answer -AssemblyCuttingWeldingCutting and WeldingWelding and AssemblyCutting and AssemblyItem 1

The rate of production. per day

The time buffer. Round your answer to one decimal place. day

The rope. units of - Select your answer -Component AComponent BItem 5

2. Select the drawing that illustrate the DBR structure of Fisher Company.

a.	b.
c.	d.

Correct answer is - Select your answer -abcdItem 6 .

3. What if the Welding Department was allowed or encouraged to produce at capacity? What effect will this have on work-in-process inventories? - Select your answer -There will be a buildup of work-in-process inventoryThere will be no buildup of work-in-process inventoryItem 7 .