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Question
An electronics repair facility is experiencing tremendous growth in its repair business. The number of repair jobs coming in are about 150 jobs/day. The average job spends 5 days in the facility.
1. What is the current work-in-process inventory level in the repair facility?
2. The facility has a goal to reduce the work-in-process inventory by half. What is the maximum time a repair job, on average, should spend in the facility to achieve the goal?
3. The repair facility is making improvements in its processes and as a result a job now spends only 3 days in the facility. What percentage change in inventory level can the facility achieve by the process improvement?
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