Using Little's Law to find the average number of items in a system (I) is the product of the average arrival rate to the system (R) and the average length of time in the system (T).
I = TxR
I=average # of tihngs in the system (inventory)
T=avereage throughput time (processing time +waiting time)
R=average flow rate in the process
Question:
A numerically controlled machining center has an average processing capacity of 5000 units per day. It receives an average of 3000 units of inventory from another machining center and it has to supply an average of 1000 units of finished goods to the packaging section. Assuming that the company incurs a significant cost for carrying finished goods supplied to the packaging section, the flow rate of the machining process is:
1) 3000 units per day
2) 5000 units per day
3) 1000 units per day
4) None of the above