At the beginning of 2011, Peters Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products:
-The theoretical velocity per hour is
A) 4.0 units.
B) 3.6 units.
C) 1.1 units.
D) 1.0 units.

Question

At the beginning of 2011, Peters Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products:  
-The theoretical velocity per hour is
A) 4.0 units. 
B) 3.6 units. 
C) 1.1 units. 
D) 1.0 units.

Quizplus · Accepted Answer

Theoretical velocity per hour is calculated by taking the maximum output of a production process. The information given about the product does not specify any limitation or constraint that would affect the maximum output. Therefore, the theoretical velocity per hour would be 4.0 units, which is the maximum output per hour. Choice A is the best answer.

At the Beginning of 2011, Peters Company Installed a JIT