Average flow time resulting from cycle inventory is equal to
A)Cycle Inventory/Demand = Q/2.
B)Cycle Inventory/Demand = Q/2D.
C)Cycle Inventory = Q/2.
D)Cycle Inventory = Lot Size = Q.

Question

Quizplus · Accepted Answer

The average flow time resulting from cycle inventory is equal to the amount of inventory divided by the demand rate. Mathematically, this can be expressed as Cycle Inventory/Demand = Q/2D, where Q is the lot size and D is the demand rate. Choice B correctly represents this formula. Choices A and C are partially correct but do not include the demand rate. Choice D is incorrect as it defines the cycle inventory as equal to the lot size, which is not always true.

Average Flow Time Resulting from Cycle Inventory Is Equal to