As you watch the simulation, please keep in mind that this is a scenario where the system flow rate is R = 9 passengers per minute and the flow time is T = 6 seconds. Question 1: Use Little’s Law to compute the average inventory in this system, measured in “passengers. Question 2: On the basis of this information, would you expect the average inventory to increase or decrease from your answer to question 1? Why? Explain briefly in words. Question 3: Now use Little’s Law to compute the correct inventory when R = 10 passengers per minute. State the new inventory, I. Were you correct in question 2?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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As you watch the simulation, please keep in mind that this is a scenario where the system flow rate is R = 9 passengers per minute and the flow time is T = 6 seconds.

Question 1: Use Little’s Law to compute the average inventory in this system, measured in “passengers.

Question 2: On the basis of this information, would you expect the average inventory to increase or decrease from your answer to question 1? Why? Explain briefly in words.

Question 3: Now use Little’s Law to compute the correct inventory when R = 10 passengers per minute. State the new inventory, I. Were you correct in question 2?

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