1. Identify and explain a business process where production (product or service based) is small lot/batch size. What are the supply chain implications of the lean system emphasis on small lot sizes for such business?

2. This question is based on applying your knowledge of break-even analysis to solve location
related problem. Break-even points of volume can help management understand the cost
structure (Total Cost = Fix Cost + Variable Cost) associated with each location based on the
quantity. The operations manager of Sugarland Inc has narrowed down the search for a new plant
to three locations. Fixed and variable costs follow. (20 points)
Fixed Costs Variable Costs
Location Per Year Per Unit
A 70,000 25
B 120,000 22
C 250,000 17
Replicate the chart below (manually or using MS Excel) and plot the total cost curves.