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Floor-On, Ltd., operates a line that produces self-adhesive tiles. This line consists of single-machine stations and is almost balanced (i.e. station rates are nearly equal). A manufacturing engineer has estimated the bottleneck rate of the line to be 2,000 cases per 16-hour day and the raw process time to be 30 minutes. The line has averaged 1700 cases per day, and the cycle time has averaged 3.5 hours. What would you estimate the WIP level to be

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Answer:

The correct answer is 372 cases.

Explanation:

According to the scenario, the given data are as follows:

Average cases per day = 1,700

Total hours in one day = 16 hour

So, Average cases per hour = 1,700 ÷ 16 = 106.25 cases

cycle time = 3.5 hours

So, we can calculate the WIP level by using following formula:

WIP = Average cases per hour × cycle time

= 106.25 × 3.5

= 372 Cases ( approx.)

Hence, the WIP level is 372 cases.