If the ordering or setup costs remain constant, the least unit cost (LUC) method is more attractive

A company wants to determine its reorder point (R). Demand is variable and they want to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days, the desired z value is 1.96, and the standard deviation of usage during lead time is 3, which of the following is the desired value of R?

In practice achieving a perfectly balanced plant is usually both impossible and undesirable.

Overemphasis on purchase price frequently results in failure to address other significant costs.

Fixed-order quantity systems assume a random depletion of inventory, with less than an immediate order when a reorder point is reached.

Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach. What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?

It is impossible to have zero variability in production processes.

For the purposes of assembly-line balancing, the required workstation cycle time is found by dividing production time per day by the required units of output per day.

At some point, the size of a growing plant can become too large and diseconomies of scale becomes a capacity planning problem.

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies which of the following is(are) “pure” production planning strategy?