The major advantage of subcontracting is:

• A.Costs associated with excess capacity are avoided, and because production is leveled, there are no costs associated with changing production levels.
• B.No need to hire and train workers.
• C.Inventories can be kept to a minimum
• D.Cost of purchasing (item cost, purchasing, and transportation and inspection costs) may be greater than if the item were made in the plant.

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Every operation producing a product or service is a series of linked processes and each process has a specific capacity to produce the given defined output for the operation, this is called:

• A.Managing constraints
• B.Scheduling Bottlenecks
• C.Theory of constraints
• D.Drum-Buffer-Rope

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CRP inputs are all of the following EXCEPT:

• A.Routings and time standards
• B.Open shop orders and leads times
• C.Planned order releases and work center capacities
• D.None of these

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A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour. Determine the fixed cost?

• A.$250.00
• B.$340.00
• C.$200.00
• D.$300.00

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What is characterized by many variations in product design, process requirements and order quantities?

• A.process improvement
• B.Intermittent manufacturing
• C.Periodic manufacturing
• D.Streamline manufacturing

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