Question

If you change from 1 lot of 60 to 2 lots of 30, and if utilization remains below 100% at all stations after doing so, what do you expect will happen to lead time? For purposes of this question assume there is a setup time at one or more of the stations.

Answer 1

Changing from 1 lot of 60 to 2 lots of 30 is expected to decrease lead time.

Step-by-step explanation:

When changing from 1 lot of 60 to 2 lots of 30, the lead time is expected to decrease. Lead time refers to the time it takes for a product to move through a process. By dividing the production into smaller lots, it reduces the time needed for each lot to be processed. In this case, dividing the lot into two smaller lots of 30 would result in a shorter lead time.