Let’s assume 3M produces “Command Hooks” at a rate of 10,000 units per day. Befo
ID: 472255 • Letter: L
Question
Let’s assume 3M produces “Command Hooks” at a rate of 10,000 units per day. Before reconfiguring their production process, their flowtime through the process was 100 days. After reconfiguring, the new flowtime is 35 days. After reconfiguring, how many units of work in progress inventory are in the process?
< 100,000
Between 100,000 and 300,000
Between 300,000 and 600,000
Between 600,000 and 900,000
>900,000
< 100,000
Between 100,000 and 300,000
Between 300,000 and 600,000
Between 600,000 and 900,000
>900,000
Explanation / Answer
The number of units in the work in progress inventory would be in the range of 600,000 and 900,000.
As the flowtime has decreased from 100 days to 35 days, thus there would be inventory of 65 days remaining in the process or in other words there would be wor in process remaining for 65 days.
Earlier, when the flowtime was 100 days, then each day production was 10,000, hence inventory in the system would be for 65 days and related with producing 10,000 units per day, which would come in the range of 600,000-900,000.
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