Warren's Ice Cream makes 4 different flavors of ice cream using their secret process and top secret recipes. Each of their flavors is equally popular and experiences a demand of 5,000 gallons/year
Warren's process is capable of producing 100 gallons/day once they incur the $25 setup cost. The ice cream holding cost is 10% of the $5 per gallon price. Warren's plant runs 250 days a year and stays busy doing so, but management feels they can add another flavor to their product line and increase their revenue. Which of the following statements is appropriate for this scenario?
A) Warren's can comfortably add a fifth flavor without increasing the number of days they operate.
B) Warren's cannot add the fifth flavor because the holding cost would increase.
C) Warren's can add the fifth flavor only if there is zero setup time between flavors.
D) Warren's cannot add the fifth flavor because demand would exceed capacity.
C
You might also like to view...
What are three methods of reasoning you can use when making a logical appeal, and how do they differ?
What will be an ideal response?
Which is true about Service Level Agreements (SLAs)?
A. They ensure that both the service desk and its customers understand their responsibilities, and they describe how service performance is to be measured. B. They should be simple, one to two page documents. If not, customers and IT staff will not take the time to fully read and comprehend them. C. They are typically used to measure the performance of a service desk; other measures are used to measure the performance of the entire IT department. D. They typically do not measure IT service characteristics such as security or availability, as these characteristics are measured by the security and availability teams.
Trade receivables occur when two companies trade or exchange notes receivables
Indicate whether the statement is true or false
Brewdom, a leading multinational beverage corporation, has teamed up with Wealth from Waste to develop a plan to improve the reverse logistics of used beverage bottles for recycle and reuse
Together, Brewdom and Wealth from Waste have plans to deploy thousands of "Recycle Machines" in both permanent and temporary locations that will take empty bottles and provide rewards to consumers who participate. These companies are practicing _____. a. sustainable supply chain management b. flexible manufacturing c. contract manufacturing d. just-in-time inventory management