Question

Consider consecutive processes ABC, where process A has a capacity of 20 units per hour, process B has a capacity of 25 units per hour, and process C has a capacity of 30 units per hour. Where would an operations manager NOT want any inventory? in front of process A. in front of process B. in front of an assembly process. in front of processes B and C

Answer 1

The correct answer to the following question is D) in front of process B and C.

Step-by-step explanation:

Given information -

Capacity of process A - 20 units per hour

Capacity of process B - 25 units per hour

Capacity of process C - 30 units per hour

So here the total capacity per hour would be = 25 + 20 + 30 = 75 units

And average capacity per hour would be = 75 / 3 = 25 units

So from the given information it is quite clear that a manger doesn't need inventory in process B and C , as in both of these process capacity is equal to or more than average capacity per hour. But a manager would need inventory in process A because here total capacity is less than average capacity per hour.