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.
In Exercise 20.4

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?

Transcribed Image Text:

Resource Usage (A) Six hours Ten hours Four hours One unit Zero units Resource Resource Available Cutting Welding Assembly Market demand (A) Market demand (B) 300 machine hours 308 welding hours 400 labor hours 50 40 Resource Usage (B) Ten hours Six hours Ten hours Zero units One unit