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.

The rate of production. per day

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

The rope. units of

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

a.	b.
c.	d.

Correct answer is

.

3. What if the Welding Department was allowed or encouraged to produce at capacity? What effect will this have on work-in-process inventories?

.