Question

The Wall Street Journal reported that “although GM and Toyota are operating with the same number of inventory turns, Toyota’s throughput is twice that of GM.” The discrepancy, concluded the writer, “could be due to much faster flow times and lower inventories by virtue of Toyota’s production system.” With which of the following deductions do you agree?
a. The two statements are consistent.
b. The two statements are inconsistent: If both have the same inventory turns, they have the same flow time; but Toyota has higher average inventory than GM.
c. The two statements are inconsistent: If both have the same inventory turns, they have the same flow time; but Toyota has lower average inventory than GM.
d. The two statements are inconsistent: If both have the same inventory turns, they have the same aver-age inventory; but Toyota has higher flow time than GM.
e. The two statements are inconsistent: if both have the same inventory turns, they have the same average inventory; but Toyota has lower flow time than GM.


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  • CreatedNovember 06, 2015
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