Huff Bicycle Company manufactures bicycles in Mexico and China and sells them in the U.S. at a steady rate 1000 bicycles per day. The time to ship a bicycle from Mexico is about three days on average and it is about 20 days to ship the bicycles from China. Currently, 20% of the bicycles are manufactured in Mexico and 80% of the bicycles are manufactured in China. 

1. What is the average number of bicycles in transit? 

2. Huffy wants to change its production volumes in Mexico and China in order to ensure that its inventory turns about 30 per year. Assuming 360 days per year, what is the new inventory level in transit?

Answer rating: 100% (QA)

Solution As per Littles law WIP throughput time x throu... View the full answer