A company is creating a product where the production line is made up of single machine stations where the throughput rates are not quite equal. The bottleneck rate of the line is 787 tons per 8 hour day, and the raw process time is 2 hours. The line has averaged 659 tons per day, and the flow time has averaged 3.5 hours. What is the estimated average WIP for the product line

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Business

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26 February, 02:01

A company is creating a product where the production line is made up of single machine stations where the throughput rates are not quite equal. The bottleneck rate of the line is 787 tons per 8 hour day, and the raw process time is 2 hours. The line has averaged 659 tons per day, and the flow time has averaged 3.5 hours. What is the estimated average WIP for the product line

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Demarion Joseph · Answer 1

WIP = 288.3125 tons

Explanation:

Work in process is also called goods in process or in process inventory. It is all unfinished goods that are being processed by a company that will eventually be completed and sold.

Production per hour = average product per day : production hours per day

Production per hour = 659 : 8 = 82.375 tons

Work in process = Production per hour * Flow time

WIP = 82.375 * 3.5 = 288.3125 tons