The GATE Grind

GATE 2020 ME (ME1) – Question 43

Production Planning and Control · Work study and productivity · 2 marks · Multiple choice

An assembly line produces 4 pieces per hour with average processing time 60 minutes. Its WIP inventory is calculated. Production rate remains unchanged, while average processing time is reduced by 30%. What happens to WIP inventory?

  1. decreases by 25%
  2. increases by 25%
  3. decreases by 30%
  4. increases by 30%

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Show answer and explanation

Correct answer: (C) decreases by 30%

Explanation

Little’s law gives WIP=throughput×flow time. Originally WIP=4×1=4 pieces; the new time is 0.7 h, giving 2.8 pieces. The reduction is (4−2.8)/4=30%. **Answer: C.**