Assume that parts arrive at a machining center at a rate of


Assume that parts arrive at a machining center at a rate of 60 parts per hour. The machining center is capable of processing 75 parts per hour-that is, the mean time to machine a part is 0.8 minute. If you are watching these parts exiting the machine center, what exit rate do you observe, 60 or 75 per hour? Explain.

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Accounting Basics: Assume that parts arrive at a machining center at a rate of
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