GATE ME 2020 Set 1 — Question 43
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Industrial Engineering → Operations Research → Line Balancing
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Question
For an assembly line, the production rate was and the average processing time was . The WIP inventory was calculated. Now, the production rate is kept the same, and the average processing time is brought down by . As a result of this change in the processing time, the WIP inventory
Correct answer
(C) decreases by 30\%
Solution
According to Little's Law:Let be the production rate and be the processing time.
Initial WIP: Given that the production rate remains constant and the processing time is reduced by , the new processing time is .
New WIP: Percentage change in WIP inventory:Therefore, the WIP inventory decreases by .
Initial WIP: Given that the production rate remains constant and the processing time is reduced by , the new processing time is .
New WIP: Percentage change in WIP inventory:Therefore, the WIP inventory decreases by .
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