An analysis of a process using Little's Law. This example calculates work-in-progress, total inventory, and flow time to determine the total cost of inventory in the system and the days of supply of inventory. The example found that the total worth of batteries in the system at any one time was $373,500, which is just the battery cost! Can you imagine how much inventory cost there is for the whole car? Next, analyze the data for your company and determine the cost and days of supply if the battery inventory could be reduced. You have been provided the initial data set below to explore.

Dataset for Module 7 Problem Battery $ 42.00 Cost Current Inventory 7700 Units If reduced to 5700 Units If reduced to 4200 Units If reduced to 2400 Units If reduced to 900 Units