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Chapter 3: Q. 5OQ (page 368)

What term refers to a schedule that pulls material into the final assembly at a constant rate?

Short Answer

Expert verified

Level schedule is a type of schedule that pulls materials into the final assembly at a constant rate.

Step by step solution

01

About Level Schedule

Level schedulingcan be defined as the sequence of orders that are in repetitive forms and are used for smoothing the day-to-day variations in all the orders. The various levels of this schedule are Level 0, Level 1, Level 2, Level 3, Level 4, etc.

02

The level schedule pulls material into the final assembly at a constant rate

It requires materials to pull them into the final assemblyin a pattern uniform that will be enough to allow the various elements of production to respond to pull signals. A given production system is equipped with flexible setups and a fixed amount of materials in the pipelines that can respond to the dynamic needs of that of the assembly line.

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Most popular questions from this chapter

Question:Used to describe functions related to the flow of material in a supply chain.

One of your Taiwanese suppliers has bid on a new line of molded plastic parts that are currently being assembled at your plant. The supplier has bid \(0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier’s factory are estimated at \)0.01 per unit. Additional inventory handling charges should amount to \(0.005 per unit. Finally, administrative costs are estimated at \)20 per month. Although your plant can continue producing the part, the plant would need to invest in another molding machine, which would cost \(10,000. Direct materials can be purchased for \)0.05 per unit. Direct labor is estimated at \(0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at \)0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house at a rate of 100 percent of direct labor cost. The firm uses a cost of capital of 15 percent per year. What should you do, continue to produce in-house, or accept the bid from your Taiwanese supplier?

Question:When a firm works with suppliers to look for opportunities to save money and benefit the environment.

In a data box on a value stream map, what do the abbreviations CT and C/O mean?

One product that Staples sells a lot of is copy paper. According to Lee’s Uncertainty Framework, what supply chain strategy is appropriate for this product?
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