Daily production of a CONWIP line is normally distributed with a mean of 300 pieces and a standard deviation of 60 pieces. The WIP level of the CONWIP line is 1,500 pieces. Currently there is a release list of 1,680 pieces with an “emergency position” 180 pieces out. A new order for 120 pieces arrives.
a) Quote a lead time with 90% confidence if the new order is placed at the end of the release list and if it is placed in the emergency position.
b) Quote a lead time with 95% confidence if the new order is placed at the end of the release list and if it is placed in the emergency position.