If I Denotes the Average Inventory in the System,T Denotes

question 23

Multiple Choice

If I denotes the average inventory in the system,T denotes the average throughput time,and R denotes the average flow rate of the system,then by Little's Law,

• A) I = T/R.
• B) T = I + R.
• C) I = R/T.
• D) R = I/T.

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Definitions:

Sales

The total amount of a company's revenues generated from goods or services provided to customers.

Divisional Operating Income

The profit generated from a specific division of a company, excluding expenses and incomes not directly related to the division's operations.

Proportional Allocation

A method of distributing costs or revenues among different departments, products, or activities in proportion to some base measure such as hours worked or units produced.

Operating Income

Earnings generated from a company's everyday business operations, reflecting its efficiency in managing its core functions.