A key component of each phone is the circuit board(s) containing the integrated circuit chips. Each phone
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The board department’s assembly schedule is determined at the beginning of each month. The five assembly departments request a time during the month when they plan delivery of particular kits to the board department and specify the number of boards to be assembled. The manager of the board department then takes these requests and tries to satisfy the assembly departments’ requests. How-ever, the board department manager finds that she has a peak load problem; the assembly departments tend to want their boards assembled at the same time. The only way to satisfy these requests is to work overtime shifts during these peak periods even though the board department has excess capacity at other times of the month.
Required:
a. If you manage a phone assembly department, when during the month would you tend to request that your phone circuit boards be assembled by the board department (everything else being held constant)? Explain why.
b. Identify various dysfunctional behaviors likely to occur among the phone assembly departments and the board department.
c. What management changes would you suggest? In particular, what changes would you make in the accounting system? Explain why each change should be made.
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Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
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