Average flow time resulting from cycle inventory = Cycle Inventory/Demand = Q/2D.

Name: Average flow time resulting from cycle inventory = Cycle Inventory/Demand = Q/2D.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This formula is correct and gives the average flow time resulting from cycle inventory. The cycle inventory is considered to be on average half of the order quantity Q, and the demand rate is represented by D. Therefore, the average flow time = cycle inventory/demand = Q/2D.

Average Flow Time Resulting from Cycle Inventory = Cycle Inventory/Demand