menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

See Cornerstone Exercise 20.4. 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 drummer, the rate of production, the time buffer, and the rope. 2. Illustrate the DBR structure of Fisher Company. 3. What if the Welding Department was allowed or encouraged to produce at capacity? What effect will this have on work-in-process inventories?

BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663
Chapter 20, Problem 5CE
Textbook Problem
32 views

See Cornerstone Exercise 20.4. 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. 1. Identify the drummer, the rate of production, the time buffer, and the rope.
  2. 2. Illustrate the DBR structure of Fisher Company.
  3. 3. What if the Welding Department was allowed or encouraged to produce at capacity? What effect will this have on work-in-process inventories?

1.

To determine

Ascertain the drummer, the rate of production, the time buffer and the rope.

Explanation of Solution

Contribution margin: Contribution margin is a measurement of performance where only revenue and variable costs are taken into consideration. Hence, this measurement is useful in the evaluation of the probable outcomes of decisions including pricing decisions and other marketing strategies that affect primarily revenue and variable costs.

Ascertain the drummer, the rate of production, the time buffer and the rope as follows:

In this case, the binding constraint is considered as the drummer, so the cutting process is only one binding constraint of Company F. Hence, cutting is the drummer of Company F...

2.

To determine

Draw the Drum-Buffer-Rope (DBR) structure of Company F.

3.

To determine

Explain the effects that the welding department would have on work-in process inventories.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 20 Solutions

Cornerstones of Cost Management (Cornerstones Series)
Show all chapter solutions
add
Ch. 20 - What is a constraint? An internal constraint? An...Ch. 20 - Explain the procedures for graphically solving a...Ch. 20 - Define and discuss the three measures of...Ch. 20 - Explain how lowering inventory produces better...Ch. 20 - What are the five steps that TOC uses to improve...Ch. 20 - Thomas Corporation produces heating units. The...Ch. 20 - Sterling Corporation has an EOQ of 5,000 units....Ch. 20 - Patz Company produces two types of machine parts:...Ch. 20 - Fisher Company produces two types of components...Ch. 20 - See Cornerstone Exercise 20.4. Fisher Company has...Ch. 20 - Ottis, Inc., uses 640,000 plastic housing units...Ch. 20 - Ottis, Inc., uses 640,000 plastic housing units...Ch. 20 - Melchar Company uses 78,125 pounds of oats each...Ch. 20 - Shorts Company manufactures backpacks. A...Ch. 20 - Morrison Manufacturing produces casings for sewing...Ch. 20 - Morrison Manufacturing produces casings for sewing...Ch. 20 - Refer to Exercise 20.10. Assume the economic lot...Ch. 20 - Eyring Manufacturing produces a component used in...Ch. 20 - Hales Company produces a product that requires two...Ch. 20 - Many companies have viewed JIT as a panaceaa...Ch. 20 - Behar Company makes three types of stainless steel...Ch. 20 - Duckstein, Inc., manufactures two types of...Ch. 20 - Which of the following describes the economic...Ch. 20 - The economic order quantity (EOQ) for Part X15 is...Ch. 20 - A JIT inventory management system maintains which...Ch. 20 - For the theory of constraints, which of the...Ch. 20 - A dedicated pharmaceutical plant uses the theory...Ch. 20 - Bateman Company produces helmets for drivers of...Ch. 20 - Burnett Company produces two types of gears: Model...Ch. 20 - Taylor Company produces two industrial cleansers...Ch. 20 - Desayuno Products, Inc., produces cornflakes and...Ch. 20 - Calen Company manufactures and sells three...Ch. 20 - Confer Company produces two different metal...Ch. 20 - Pratt Company produces two replacement parts for a...Ch. 20 - Bountiful Manufacturing produces two types of bike...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
Define depreciation as it relates to a van you bought for your business.

College Accounting (Book Only): A Career Approach

Explain the concept of vesting.

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Why do economists oppose policies that restrict trade among nations?

Principles of Microeconomics (MindTap Course List)

Name three types of temporary accounts.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Why is productivity important?

Essentials of Economics (MindTap Course List)

What is a computer virus?

Pkg Acc Infor Systems MS VISIO CD