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9 November, 15:10

If both the average flow rate and average flow time of a process are increased by 50%, the percentage change in the average number of units in the process is:

(a) 125%

(b) 50%

(c) Cannot be determined

(d) 225%

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Answers (1)
  1. 9 November, 18:53
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    The percentage change in the average number of units in the process is 125%.

    Explanation:

    Based on Little's law;

    Average inventory = average flow rate * average flow time

    Let inventory = I, average flow rate = R and average flow time = T

    Thus, I = R*T = RT

    Now, Average flow rate and average flow time are increased by 50%

    R' = R + 0.5R = 1.5R

    T = T + 0.5T = 1.5T

    So, inventory, I' = 1.5R*1.5T=2.25RT

    Hence, the percentage change in the average number of inventory units in the process.

    % change = I' - I = 2.25RT - RT = 1.25RT or 125%

    Thus correct answer = 125%
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