Question

Which of the following are options when a production manager receives a planner order?

1) Combine the planned order with other orders
2) Reject the planned order
3) Authorize the production

Answer 1

A production manager can combine, reject, or authorize production when they receive a planned order. Opting for a production technology with the lowest total cost, such as one with cheaper machine hours, is advisable to save money and improve efficiency.

Step-by-step explanation:

When a production manager receives a planned order, they have several options to consider for managing it effectively:

• Combine the planned order with other orders to create efficiencies in production and reduce costs.
• Reject the planned order if it is not viable or does not fit with current production capabilities or demand.
• Authorize the production of the planned order to begin the manufacturing process once the order is deemed feasible and necessary.

Choosing the appropriate production technology, such as production technology 3, is crucial when it is associated with the lowest total cost. With cheaper machine hours, there often is a strategic shift towards utilizing more machinery over labor to optimize production costs and efficiency.