Determining the wip inventory


Assignment:

Purchasing requests arrive to an agent at a rate of six per day. The time between arrivals is exponentially distributed. The agent typically requires 1 h to process a request. The processing time is also exponentially distributed. Assuming 8 h working days

a. What is the cycle time (the average time that a request spends in the process)?
b. What is the WIP inventory (the average number of requests in the process)?
c. How often is the WIP entirely replaced with a new set of requests?

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Accounting Basics: Determining the wip inventory
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