The throughput rate of a production system is 20 units per hour. The a...
To determine the average inventory in the system, we need to consider the relationship between throughput rate, flow time, and cycle time.
1. Understanding the Terms:
- Throughput Rate: It represents the number of units that can be produced or processed per unit of time. In this case, the throughput rate is given as 20 units per hour.
- Flow Time: It is the average time it takes for a unit to flow through the system from start to finish. The flow time is given as 30 minutes.
- Cycle Time: It is the time required to complete one cycle or operation within the system. The cycle time is given as 3 minutes.
2. Calculating the Average Inventory:
The average inventory can be calculated using the Little's Law formula, which states that average inventory (I) is equal to the throughput rate (R) multiplied by the flow time (T). Mathematically, it can be represented as I = R * T.
In this case, the throughput rate is given as 20 units per hour, which can be converted to units per minute by dividing it by 60. So, the throughput rate is 20/60 = 1/3 units per minute.
Substituting the values into the formula, we get:
Average Inventory (I) = (1/3 units per minute) * 30 minutes
= 10 units
Therefore, the average inventory in the system is 10 units.
3. The Correct Answer:
The correct answer is option 'C', which states that the average inventory in the system is 10 units.