Little's Flow Equations are transferable to a production environment.Which of the following would be a proper interpretation of Little's Flow Equations?
A)Flow Rate = Inventory × Flow Time
B)Flow Time = Inventory × Flow Rate
C)Inventory = Flow Rate × Flow Time
D)Time to Take an Order = Flow Rate × Flow Time
E)Flow Rate = Time to Take an Order × Flow Time

Question

Quizplus · Accepted Answer

Little's Flow Equations express the relationship between inventory, flow rate, and flow time in a system. The equation is Inventory = Flow Rate x Flow Time. This means that the amount of inventory in a system is equal to the rate at which items flow through the system multiplied by the time it takes for an item to complete the entire flow process. Choice A and B are incorrect because they have the wrong variables in the equation. Choice D and E are incorrect because they are not a part of Little's Flow Equations.

Little's Flow Equations Are Transferable to a Production Environment