Question: Consider a flexible flow shop environment. Whenever a job has to wait before it can start its processing at the next stage it is regarded

Consider a flexible flow shop environment. Whenever a job has to wait before it can start its processing at the next stage it is regarded as Work-In- Process (WIP), since it already has received processing on machines upstream. 

Manufacturing Models

The costs associated with WIP are storage costs, amount of value already added, cost of capital, and so on. Explain why high WIP costs may postpone the starting times of jobs on certain machines.

Step by Step Solution

3.61 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

WIP stands for work in progress and it refers to the raw materials labor and overhead costs assoc... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!