Compared to the process without inventory

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Consider the six-step process in the Process 1 tab where the processing time for each step is uniformly distributed, for which processing times can range from 12 to 18 minutes (any value in that range is as likely to occur as any other in that range).

1) If inventory were permitted to accumulate throughout this process, what impact would you expect on capacity (as compared to the process without inventory)?  options are either a smaller or larger impact on capacity than the first unit.

2) If you could add one inventory buffer, where would you add it to maximize capacity?

3) If you added a second unit of buffer to the same location as the first, what would be the incremental impact on capacity of the second unit as compared to the first unit?

This might be a business or TQM question.

Reference no: EM13320783

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