New Time Videos (NTV) is a new online video rental service. In the field, it is trying to compete by offering its customers access to all of the major new video releases in one business day. That is, if you order a video from NTV, you can expect it in one business day from the time when you placed the order. When you are done with the video, you simply drop it in the prepaid mailing envelope and return it. All videos arrive in a sorting facility located in the Midwest where envelopes with the videos are opened, checked (right video with the right sleeve, no scratches, no cracks, no dirt on the videos), and made ready to be sent out again. As the manager of this facility, your goal is to turn the returned videos around in 6 hours (a shift is 8 hours long). You have the following information:

Inventory of the video 450,000 per shift

Throughput 345,000 per shift

Calculate the expected average flow time.

Question

Business

Guest

22 March, 13:18

New Time Videos (NTV) is a new online video rental service. In the field, it is trying to compete by offering its customers access to all of the major new video releases in one business day. That is, if you order a video from NTV, you can expect it in one business day from the time when you placed the order. When you are done with the video, you simply drop it in the prepaid mailing envelope and return it. All videos arrive in a sorting facility located in the Midwest where envelopes with the videos are opened, checked (right video with the right sleeve, no scratches, no cracks, no dirt on the videos), and made ready to be sent out again. As the manager of this facility, your goal is to turn the returned videos around in 6 hours (a shift is 8 hours long). You have the following information:

Inventory of the video 450,000 per shift

Throughput 345,000 per shift

Calculate the expected average flow time.

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Answers (1)

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Chad Hutchinson · Answer 1

Expected average flow time = 0.163 videos per hour.

Explanation:

In calculation of average flowtime we should define throughput.

Throughput is the rate at which a product is processed in the production process. In this case it is the number of customers served per unit time.

Average inventory = Expected average flow time * Throughput

Therefore

Expected average flow time = Average inventory / Throughput

Expected average flow time = 450,000/345,000*8

Expected average flow time = 450,000 / 2,760,000

Expected average flow time = 0.163 videos per hour