EBK OM
EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
Question
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Chapter 7, Problem 15PA

(a)

Summary Introduction

Interpretation: The total flow time of a throughput dollar is to be calculated.

Concept Introduction:

Any flow unit, when flows through a process, follows L’s Law which states that the Work in Progress and is given by,

  WorkInProgress(I)=FlowTime(T)×Throughput(R)

(b)

Summary Introduction

Interpretation: The average dollar inventory in the value chain is to be determined.

Concept Introduction:

The average dollar inventory in the system is the total WIP combining all stages.

(c)

Summary Introduction

Interpretation: The major stagethat is the best candidate for freeing up dollars for the air conditional manufacturer is to be determined.

Concept Introduction:

Any flow unit, when flows through a process, follows L’s Law which states that the Work in Progress in the process is the product of Flow time/ Cycle time and the Throughput/ Flow rate.

(d)

Summary Introduction

Interpretation: The largest level of average accounts receivable inventory is to be determined.

Concept Introduction:

Any flow unit, when flows through a process, follows Little’s Law which states that the Work in Progress and given by,

  WorkInProgress(I)=FlowTime(T)×Throughput(R)

(e)

Summary Introduction

Interpretation: The process thatis demonstrated by flow time analysis.

Concept Introduction:

The flow time is an average time that a unit requires to flow through the process from the entry point to the exit point.

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