If a Factory Has 100,000 Units of Raw Materials Waiting

question 1

Multiple Choice

If a factory has 100,000 units of raw materials waiting in the system and if the average flow rate of the system is 5000 units per day,then according to Little's Law,the average throughput time is:

• A)0.5 days
• B)20 days
• C)0.05 days
• D)100 days
• E)10 days

---

Definitions:

Job A578

A specific project or task within an organization, identified by the code A578 for tracking and cost allocation purposes.

Predetermined Manufacturing Overhead

The estimated cost of manufacturing overhead assigned to each unit of production, based on a predetermined rate.

Machine-hours

A measure of the amount of time a machine is used for production, often used in allocating manufacturing overhead based on usage.

Markup

The amount added to the cost price of goods, to cover overhead and profit, determining the selling price.