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Tech Inc. produces prototype circuits. Tech Inc's owner claims that the theoretical flow time for an...

Tech Inc. produces prototype circuits. Tech Inc's owner claims that the theoretical flow time for an order is two weeks and that there are on average 15 orders being worked on at Tech Inc's plant. Tech Inc further claims they receive on average five orders per week. Are these numbers consistent? (Explain)

Business   Operations-Management   
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Answer #1

The numbers cannot be consistent because the number of orders keep varying depending on the time being taken to complete the orders. If they improve the time the number of orders might increase and vise versa. The numbers keep on changing with the work done. The numbers could be said consistent if they are same for a minimum of six months . But in many cases this is not possible because the numbers might depend on many factors like availability of employees, season, inventory etc.,

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