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Chapter 4: Q6PE. (page 585)

If an item is used in two places in a bill-of-materials, say level 3 and level 4, what low-level code would be assigned to the item?

Short Answer

Expert verified

Level 4.

Step by step solution

01

 Low-level code

Low-level codinghelps in planning the items in the correct order. The items that have been already planned, to them the demand is not passed. While the processing of production lots of material is used in producing and it is not important that all the materials are applied in the same amount.

It is used as per the requirement of material. If there is less requirement of material, then low-level code will be given.

02

 If an item is used in two places in a bill-of-materials, say level 3 and level 4, what low-level code would be assigned to the item?

Level 4 because in low-level coding the items that proceed earliest are added to it.

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Most popular questions from this chapter

Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stock-outs at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, \(100 for each temp; layoff, \)200 for each worker laid off; inventory holding, \(5 per unit-quarter; backorder, \)10 per unit; straight time, \(5 per hour; over time, \)8 per hour. Assume that the productivity is 0.5 units per worker hour, with eight hours per day and 60 days per season.

This type of analysis is most appropriate when the past is a good predictor of the future?

Question: When overtime is used to meet demand and avoid the costs associated with hiring and firing.

Question: What category of forecasting techniques uses managerial judgment in lieu of numerical data?

Question: List at least three of the four costs relevant to the aggregate production plan.
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