solved I’m stuck on a Management question and need an explanation.
I’m stuck on a Management question and need an explanation.
n practice, one often tracks inventory status periodically (each day, week, or month). Flow rate is typically also tracked periodically (even more frequently than inventory status because it directly relates to sales). It then is easy to calculate the average of those numbers to obtain average inventory and throughput during a period. In contrast, few companies track the flow time of each flow unit, which must be done to calculate the average flow time (over all flow units during a given period). Discuss Why is this best? Is there an alternative? What would be the consequences?