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Currently, in Littlefield, jobs arrive at 12 per day and you have (just) enough capacity at each station (i.e., the departure rate is also 12 per day). If you want to change to a contract that promises a throughput time of at most 0.25 days to reap the full profits, then what should you set your WIP Limit as

Respuesta :

temmydbrain

Answer:

The WIP limit is 0.50 days.

Step-by-step explanation:

The Computation of WIP limits:

to begin with, it is required to compute the process and procedure efficiency which will be computed as follows:

Value Added Time = 12 days (arriving time)

Non-Value-Added Time = 12 days (departure time)

Efficiency = Value Added / (Value Added + Non-Value Added)

                = 12 / (12+12)

                = 12 / 24

               = 0.50 or 50%

the most obligatory throughput time will be 0.25 days to realize the profits

WIP limit = Throughput time / Efficiency  

               = 0.25 / 50%

               = 0.50 days.

The WIP limit is 0.50 days.

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