Question: Decreasing the processing time at a step that has a setup, but is not the bottleneck, and holding everything else constant, _______ the average inventory.
Decreasing the processing time at a step that has a setup, but is not the bottleneck, and holding everything else constant, _______ the average inventory. How?
The formula is average inventory is 1/2 Batch Size ( 1- Flow Rate * Processing Time)
The answer is decrease. I do not understand how
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