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A manufacturing company plans to implement a process improvement that will increase the process flow rate by 25% and decrease the process flow time by 15%. what will be the percentage change in the average number of units in the process?

A. 2.25%
B. 6.25%
C. 4.75%
D. 10%

1 Answer

1 vote

Final answer:

The percentage change in the average number of units in the process due to a 25% increase in process flow rate and a 15% decrease in flow time is a 10% increase.

Step-by-step explanation:

The percentage change in the average number of units in the process is 10%. To find this, we consider that the process flow rate increasing by 25% translates into the number of units produced per unit time also increasing by 25%. Flux, or the rate of flow, refers to how quickly something is processed or moved through a system. To calculate the net effect on the average number of units, we can utilize the principle that the average number of units in the process (inventory levels) is equal to the product of the process flow rate and the process flow time.

simplifies to 1.25 / 0.85, which is approximately 1.471. To determine the percentage change, we subtract 1 from this result and multiply by 100, giving us 47.1%. Comparing the initial and final inventory levels, a 47.1% increase in flow rate with a simultaneous 15% decrease in flow time gives us a net percentage increase in the average number of units in the process of 47.1% - 25% - 15%, which equals to 10%.