
(a)
Interpretation: The total flow time of a throughput dollar is to be calculated.
Concept Introduction:
Any flow unit, when flows through a process, follows L’s Law which states that the Work in Progress and is given by,
(b)
Interpretation: The average dollar inventory in the value chain is to be determined.
Concept Introduction:
The average dollar inventory in the system is the total WIP combining all stages.
(c)
Interpretation: The major stagethat is the best candidate for freeing up dollars for the air conditional manufacturer is to be determined.
Concept Introduction:
Any flow unit, when flows through a process, follows L’s Law which states that the Work in Progress in the process is the product of Flow time/ Cycle time and the Throughput/ Flow rate.
(d)
Interpretation: The largest level of average accounts receivable inventory is to be determined.
Concept Introduction:
Any flow unit, when flows through a process, follows Little’s Law which states that the Work in Progress and given by,
(e)
Interpretation: The process thatis demonstrated by flow time analysis.
Concept Introduction:
The flow time is an average time that a unit requires to flow through the process from the entry point to the exit point.

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