GATE 2020 ME (ME1) – Question 43
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?
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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.**