Quiz 11: Planning Production Activity


A high level of production capability is of critical importance for the country U.S. even in the postindustrial society. This is necessary to ensure that all the service-related jobs that have been emerging in the latter half of the 20th century have an industry to serve. Without a strong manufacturing segment, a high proportion of the service industry that fuels many of the jobs in the U.S. today could collapse. This is because the service industry exists to support the manufacturing industry that actually creates the goods that are consumed by people.

As per the specifications given in the question, Cost per unit (I) = $2 Setup cost (S) = $40 Number of units (R) = 1000 (a) The Economic Order Quantity (EOQ) can be calculated using the following formula img In this formula, R is the required annual units S is the setup cost I is the inventory cost per unit Therefore, img The company should produce 200 units per batch. (b) If the setup cost (S) can be reduced to $10, then EOQ calculation changes as shown below. img The company should now produce 100 units per batch.

Some of the positions that can be filled by engineers in large manufacturing plants are as follows: • mechanical engineer • plant engineer • process engineer • manufacturing engineer • electrical engineer • chemical engineer • industrial engineer • maintenance engineer • operations manager • supply chain manager • quality manager • production manager