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Batch size of one
Set up time is the amount of time needed to adjust tools and to retool for various product. Long set ups a change over time make the production of batches with a small no. of units too expensive.
However, the creation of large batches leads to substantial lead time delays and the creation of high inventory levels. The JIT philosophy is to decrease and ultimately eliminate set-up times. E.g. by investing in advanced manufacturing technology some machines setting can be adjusted automatically instead of manually.
Alternatively some set up times can be eliminated entirely by reducing products, so that markets do not have to be reset each time a different product has to be made.
If the set up times are approaching zero, then there’s no advantage production in batches and therefore the optimal batch size can be one. With a batch size of one, the work can flow smoothly to the next stage without the need for and to schedule the next machine to accept this item.
Risk seeking: A risk seeker is a decision maker who is concerned in the best likely outcome no matter how small the chance that they might take place i.e. he takes high risks
Explain with examples five areas where linear programming can be applied in Managerial accounting
Cost volume profit analysis Meaning and definition Cost volume profit analysis is a technique for studying the relationship between cost volume and profits . profits of an
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relevance to business owners, employees and public?
What are Selling and distribution expenses? Selling and distribution expenses incurred for the marketing of a commodity, for securing orders for the articles, dispatching goods
Categories of zero base budgeting The preceding discussion will reveal that zero base budgeting is based primarily on: 1) Development of decision units 2) Identification
Participative Budgets In this approach to budgeting, budgets are developed by lower level managers who then submit them to their superiors. The budgets depend on the lower level
how much is this service?
when assessing Market Value of common stock, is the "market value" the market value when the company sold the stock or the current market value?
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