Inventory Microbucks Computer Company makes two computers, the Pomegranate II and the Pomegranate Classic, at two different factories. The Pom II requires 2 processor chips, 16 memory chips, and 20 vacuum tubes, while the Pom Classic requires 1 processor chip, 4 memory chips, and 40 vacuum tubes. Microbucks has in stock at the beginning of the year 500 processor chips, 6,000 memory chips, and 9,000 vacuum tubes at the Pom II factory, and 150 processor chips, 2,000 memory chips, and 20,000 vacuum tubes at the Pom Classic factory. It manufactures 50 Pom IIs and 50 Pom Classics each month. Microbucks Computer Company, besides having the stock mentioned above, gets shipments of parts every month in the amounts of 110 processor chips, 1,000 memory chips, and 3,000 vacuum tubes at the Pom II factory, and 60 processor chips, 1,000 memory chips, and 2,200 vacuum tubes at the Pom Classic factory. (a) What will the company's inventory of parts be after 6 months? Processor chips Memory chips Vacuum tubes Pom II factory Pom Classic factory (b) When (if ever) will the company run out of one of the parts? O The company will run out of parts in 6 months. O The company will run out of parts in 12 months. O The company will run out of parts in 18 months. O The company will run out of parts in 24 months. O The company will never run out of parts.
Inventory Microbucks Computer Company makes two computers, the Pomegranate II and the Pomegranate Classic, at two different factories. The Pom II requires 2 processor chips, 16 memory chips, and 20 vacuum tubes, while the Pom Classic requires 1 processor chip, 4 memory chips, and 40 vacuum tubes. Microbucks has in stock at the beginning of the year 500 processor chips, 6,000 memory chips, and 9,000 vacuum tubes at the Pom II factory, and 150 processor chips, 2,000 memory chips, and 20,000 vacuum tubes at the Pom Classic factory. It manufactures 50 Pom IIs and 50 Pom Classics each month. Microbucks Computer Company, besides having the stock mentioned above, gets shipments of parts every month in the amounts of 110 processor chips, 1,000 memory chips, and 3,000 vacuum tubes at the Pom II factory, and 60 processor chips, 1,000 memory chips, and 2,200 vacuum tubes at the Pom Classic factory. (a) What will the company's inventory of parts be after 6 months? Processor chips Memory chips Vacuum tubes Pom II factory Pom Classic factory (b) When (if ever) will the company run out of one of the parts? O The company will run out of parts in 6 months. O The company will run out of parts in 12 months. O The company will run out of parts in 18 months. O The company will run out of parts in 24 months. O The company will never run out of parts.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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Transcribed Image Text:Inventory Microbucks Computer Company makes two computers, the Pomegranate II and the Pomegranate Classic, at two different factories.
The Pom II requires 2 processor chips, 16 memory chips, and 20 vacuum tubes, while the Pom Classic requires 1 processor chip, 4 memory
chips, and 40 vacuum tubes. Microbucks has in stock at the beginning of the year 500 processor chips, 6,000 memory chips, and 9,000 vacuum
tubes at the Pom II factory, and 150 processor chips, 2,000 memory chips, and 20,000 vacuum tubes at the Pom Classic factory. It
manufactures 50 Pom IIs and 50 Pom Classics each month.
Microbucks Computer Company, besides having the stock mentioned above, gets shipments of parts every month in the amounts of 110
processor chips, 1,000 memory chips, and 3,000 vacuum tubes at the Pom II factory, and 60 processor chips, 1,000 memory chips, and 2,200
vacuum tubes at the Pom Classic factory.
(a) What will the company's inventory of parts be after 6 months?
Pom II factory
Pom Classic factory
Processor chips Memory chips Vacuum tubes
(b) When (if ever) will the company run out of one of the parts?
O The company will run out of parts in 6 months.
O The company will run out of parts in 12 months.
O The company will run out of parts in 18 months.
O The company will run out of parts in 24 months.
O The company will never run out of parts.
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