Little's Flow Equations Are Transferable to a Production Environment

question 145

Multiple Choice

Little's Flow Equations are transferable to a production environment.Which of the following would be a proper interpretation of Little's Flow Equations?

• A)Flow Rate = Inventory × Flow Time
• B)Flow Time = Inventory × Flow Rate
• C)Inventory = Flow Rate × Flow Time
• D)Time to Take an Order = Flow Rate × Flow Time
• E)Flow Rate = Time to Take an Order × Flow Time

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Definitions:

Loan

Borrowed money that is expected to be paid back with interest.

Variable Cost

Expenses that vary directly with production output.

Mud Statues

Sculptures made from mud or clay, often created as artistic or cultural items.

Loan

A borrowed amount of funds that needs to be returned along with additional interest charges.