Assuming the Assembly Line Prototype

Assuming the assembly line prototype is implemented as shown in Exhibit 1, calculate the following quantities:

• Process Capacity

236*24/7.5=755 unit

• The maximum number of computers that can be produced in a 7.5 hour shift.

: Total time is 27000 sec, 27000/114=236.8, 236 unit

• Direct Labor Content per notebook computer (i.e., the amount of time a worker actually works on a computer while it is on the assembly line).

=843+105+(31+71)+208/3=1119.3 sec.

• Direct Labor Idle Time per notebook computer assembled (i.e., the amount of time workers are idle per computer assembled).

Idle time per computer = 1368-1119.3=248.7 sec.

• Inventory on the assembly line

Inventory on the assembly line=12

• Flow Time for a notebook computer

: Bottleneck process: station 2 operation time=114sec

So, the cycle time is 114*(9+3) =1368 sec.

So, the flow time for a notebook computer is 1368 sec.

I. Introduction

The conduct of stock split or reverse stock split may merely be cosmetic and is done only when the company wishes to increase or decrease its stock price. But often at times, during days before or after stock split or reverse stock split, there are irregular phenomenon found related to abnormal returns, liquidity, and volatility.

Theoretically, the corporate action is neutral to value. Investors would obtain a given amount of stock certificates based on the split proportion, and the stock's market price would also increase or decrease proportionally to the split factor. Alas, stock split and reverse stock split could send out an effect or signal affecting investor's perception.

For stock split, the underlying perception is that companies conducting stock split would surely have an increasing future earnings or that the company would give out an amount of cash dividend in the future. For this matter, stock split would push the stock price up, so that during days near the announcement, abnormal returns are often found. Besides that, there is also a significant difference between the

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