Redoing an exam and would like to know my mistakes to study and learn from them
ID: 357687 • Letter: R
Question
Redoing an exam and would like to know my mistakes to study and learn from them
THE PROCESS FLOW DIAGRAM IS IN THE PICTURE......
Problem 5. (6 Points) Two different companies produce and sell a certain product to customers. Each of the two companies starts with the same raw materials and creates the product through three stages of processing. However, the two companies each use a different strategy when creating the product, which can be seen by comparing by the process flow diagrams of each companys operations, as seen below. In each diagram, the triangles represent inventory stocks, while the squares represent processing: Please answer the following two questions, based on this information. Process flow diagram of Company A to customer Process flow diagram of Company B to customer 1 1. Which of the following statements is (are) likely true about Company A? a) Company A is probably offering a more customized product than Company B. O b) Company A appears to be pursuing a "Make to Stock" process strategy. c) From the customers perspective, buying the product from Company A is probably less expensive than buying it from Company B. 2. Which of the following statements is (are) likely true about Company B? a) Company B appears to be stockpiling finished goods. b) Company B's customers probably dont have to wait as long as Company A's customers to complete their purchase. c) Company B appears to be pursuing an "Assemble to Order" process strategy. Version AExplanation / Answer
1) Option (a) is the correct answer.
Because before delivering to customer, final process is being carried out from the inventory which means that the end customer is served with the customized products.
Option (b) and (c) are wrong as the A process is not make to stock because the final process is carried out after being inventoried. Customized products are generally costly compared to the make to stock products.
2) Option (b) is the correct answer. [Note: Both Option (a) and (b) can be right answer]
It is a make to stock strategy. Inventory is made after all the processes are over. This enables the customer not to wait for the product as the product is already ready and inventoried.
Option (c) is wrong because this is not assemble to order but it is make to order startegy.
Option (a) can be right as the company is actually stock piling the finished goods which is shown clearly by the process diagram. i.e., after the three processes, the final product is inventoried and then delivered to customer.
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