QUESTION 11
Based on Little’s Law
An automobile company assembles cars in a plant and purchases batteries from a supplier at the cost of $45/battery. The average flow time of cars from start to finish in the plant is 12 hours and the plant assembles 600 cars/day, operating 24 hours/day. Each car uses one battery and the cars are shipped to the dealers soon after they are made. The company holds 2400 batteries in raw material inventory at the plant as a buffer. How many days of supply are held in raw material inventory on average?
A.
less than 1 day
B.
between 1.01 and 3
OR
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OR
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