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Department A can produce parts at a rate of 5 0 / day . Department B uses those parts at a rate of 1 0
Department A can produce parts at a rate of day Department B uses those parts at a rate of day. Each day unused parts are added to inventory. At what rate does the inventory of unused parts build up
The question to be answered: At what rate does inventory of unused parts build up ie increase per day?
The given information: Production rate partsday
Usage rate parts day
For this simple problem, no formula or table is needed. Inventory buildup is simply the difference between the production and usage rates.
Production rate partsday
Usage rate part
Inventory buildup part day
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