Consider the System Composed of Four Processes Linked by a Conveyor

question 19

Multiple Choice

Consider the system composed of four processes linked by a conveyor belt. There is no storage between these processes pictured below and market demand of 40 units per hour drives the conveyor belt. Assume that no defective units are made. Which statement is best?

• A)The average time a unit spends in Process 1 is 2 and a half minutes.
• B)The average time a unit spends in Process 2 is 5 minutes.
• C)The flow time for a unit through the entire process is 33 minutes.
• D)The flow rate through the entire process is 160 units per hour.

---

Definitions:

Unrealized Profits

Profits that have been generated on paper through investments but have not actually been realized through a sale or exchange.

Intercompany Transactions

Transactions between entities within the same group that are eliminated in the process of preparing consolidated financial statements to avoid double counting.

Wholly Owned

A company whose entire share capital is 100% owned by another company, making it a complete subsidiary.

Unrealized Profit

Profits that have been accounted for but not yet realized through a transaction, such as stocks that have increased in value but have not been sold.