Question: You are a process analyst at a contract electronics manufacturer (CEM) that provides manufacturing capacity for the production of branded products such as cell phones
You are a process analyst at a contract electronics manufacturer (CEM) that provides manufacturing capacity for the production of branded products such as cell phones and other electronic goods. One of the processes that you support is preparing to produce portable computer hard drives for several customers. This is new business for your company but other CEMs have produced this product in the past. Information obtained from these other contractors provides some initial estimates for purposes of production planning at your operation. The estimates include flow time of about 18 hours per unit and an average completion rate of 75 hard drives per hour. The production manager at your facility is also hoping to produce upcoming orders using a work in process inventory of 500 units or less.
If the production process maintained an 18 hr/unit flow time, what would the average completion rate need to be in order to achieve 500 units of WIP?
Group of answer choices
A. 9,000 units/hr
B. 125 units/hr
C. 11.3 units/hr
D. 27.8 units/hr
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