ABS sells construction materials to commercial and home builders. One of ABS's key processes is the order fulfillment process shown below and described as follows:
• All orders are assessed on arrival. Of the orders, 30% are immediately declined for various reasons. The typical order spends 0.25 days in this order assessment step before moving on.

• 20% of all orders are large orders. Average total time in this large orders processing step, including waiting and actual process time, is 2 days.
• 50% of all orders are small orders. Average time in this small orders processing step, including waiting and processing, is 0.5 days.
• ABS receives an average of 20 order requests a day.
The system is currently in steady state.
a. What is the estimated total inventory for the entire order fulfillment process?
b. Based on the information given above and your answer to part a, what is the estimated total flow time for the average order entering the process?

  • CreatedApril 10, 2015
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