Inspection and increased congestion

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Reference no: EM131179077

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Incoming goods flow into US at the rate of $423 billion every year. Imagine the supply chain to be a long pipeline where goods are put in at one end, and they come out at the other end (at the Ports). Due to inspection and increased congestion, the lead time (flow time) has increased. Suppose the flow time increases by one day. What is the increase in inventory (in the pipeline) on account of the one-day delay (in billions of $)? Assume the same rate of flow of $423 billion per year. Choose the closest answer.

A: 1

B:  50

C: 100

D: 400

E: 800

Reference no: EM131179077

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