Chapter 6

Question 1

What 4 types of firms are their (in terms of production)?

Answer 1

• Make-to-stock firms: Firms that serve customers from finished goods inventory
• Assemble-to-order firms: firms that combine a number of preassembled modules to meet a customer’s specifications
• Make-to-order firms: that make the customer’s product from raw materials, parts, and components
• Engineer-to-order firm: firm that will work with the customer to design and then make the product

Question 2

What is a continuous production strategy?

Answer 2

It is one with very few product types. Individual products cannot be distinguished from each other, until packaging (fluids, gasses).

Question 3

What is an assembly line production strategy?

Answer 3

This is one that has a single path through the process. All products follow that same path.

Question 4

What is a work-center layout?

Answer 4

This is a production strategy where workers focus on one type of operation. Usually that means putting all of one type of equipment together to make a work-center.

Question 5

What is a manufacturing cell?

Answer 5

This is a production strategy. The idea is to devote all the various pieces of equipment needed for making a particular item to that item. This cuts down on idle time between stations, but it makes production less flexible if we suddenly need less of that item and more of something else.