A company is creating a product where the production line is made up of single machine stations where the throughput rates are not quite equal. The bottleneck rate of the line is 787 tons per 8 hour day, and the raw process time is 2 hours. The line has averaged 659 tons per day, and the flow time has averaged 3.5 hours. What is the estimated average WIP for the product line

Question

Sydnee Trujillo

Business

27 December, 23:59

A company is creating a product where the production line is made up of single machine stations where the throughput rates are not quite equal. The bottleneck rate of the line is 787 tons per 8 hour day, and the raw process time is 2 hours. The line has averaged 659 tons per day, and the flow time has averaged 3.5 hours. What is the estimated average WIP for the product line

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Answers (1)

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Titus Gibson · Answer 1

WIP = 288.3125 tons

Explanation:

Work in process is also called goods in process or in process inventory. It is all unfinished goods that are being processed by a company that will eventually be completed and sold.

Production per hour = average product per day : production hours per day

Production per hour = 659 : 8 = 82.375 tons

Work in process = Production per hour * Flow time

WIP = 82.375 * 3.5 = 288.3125 tons