These problems illustrate the application of Little’s Law. 1. Suppose that a voting facility processes an average of 57 people per hour (throughput) and that, on average, it takes 35 minutes for each person to complete the voting process (flow time). 2. Suppose that the loan department of a bank takes an average of 15 days (0.5 months) to process an application (flowtime) and that an internal audit found that about 100 applications are in various stages of processing at any one time (work-in-process). 3. Suppose that a restaurant makes 350 pizzas per week, each of which uses 1/2 pound of dough, and that it typically maintains an inventory of 60 pounds of dough.   Open the spreadsheet and perform the required analysis to answer the questions below.   1. What is the work-in-process for the problem 1? Round your answer to two decimal places. ______ voters 2. What is the throughput (per month) for the problem 2? Round your answer to the nearest whole value. ____________ applications per month 3. What is the flow time (in weeks) for the problem 3? Round your answer to two decimal places. ________ weeks

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 28E
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These problems illustrate the application of Little’s Law.

1. Suppose that a voting facility processes an average of 57 people per hour (throughput) and that, on average, it takes 35 minutes for each person to complete the voting process (flow time).

2. Suppose that the loan department of a bank takes an average of 15 days (0.5 months) to process an application (flowtime) and that an internal audit found that about 100 applications are in various stages of processing at any one time (work-in-process).

3. Suppose that a restaurant makes 350 pizzas per week, each of which uses 1/2 pound of dough, and that it typically maintains an inventory of 60 pounds of dough.

 

Open the spreadsheet and perform the required analysis to answer the questions below.

 

1. What is the work-in-process for the problem 1? Round your answer to two decimal places.

______ voters

2. What is the throughput (per month) for the problem 2? Round your answer to the nearest whole value.

____________ applications per month

3. What is the flow time (in weeks) for the problem 3? Round your answer to two decimal places.

________ weeks

A
B
E
F
1
Little's Law
Formulas
Throughput (per hour)
Flow time (in minutes)
Flow time (in hours)
Work-in-process (WIP)
3
57
4
35
#N/A
#N/A
7
Flow time (in month)
Work-in-process (WIP)
Throughput (per month)
8
0.50
9.
100
10
#NIA
11
Work-in-process (WIP)
Number of pizzas (per week)
Pound of dough (per pizza)
Throughput (per week)
Flow time (in weeks)
12
60
13
350
14
0.50
15
#N/A
16
#N/A
17
18
19
20
21
22
23
Transcribed Image Text:A B E F 1 Little's Law Formulas Throughput (per hour) Flow time (in minutes) Flow time (in hours) Work-in-process (WIP) 3 57 4 35 #N/A #N/A 7 Flow time (in month) Work-in-process (WIP) Throughput (per month) 8 0.50 9. 100 10 #NIA 11 Work-in-process (WIP) Number of pizzas (per week) Pound of dough (per pizza) Throughput (per week) Flow time (in weeks) 12 60 13 350 14 0.50 15 #N/A 16 #N/A 17 18 19 20 21 22 23
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