A Company Has a Target Output Rate of 40 Units

question 61

Multiple Choice

A company has a target output rate of 40 units every five 5) hours when its line is fully operational.To achieve this target the firm must have a cycle time of

• A)more than 12.50 minutes
• B)more than 10.00 minutes
• C)7.5 minutes or less
• D)8 minutes or less

---

Definitions:

Inventory Turnover

A metric that measures how often a company sells and replaces its stock of goods over a certain period, indicating the efficiency of inventory management.