New Time Videos (NTV) is a new cnline video rental service. In the field, it is
ID: 388319 • Letter: N
Question
New Time Videos (NTV) is a new cnline video rental service. In the field, it is trying to compete by offering its customers access to all of the major new video releases in one business day. That is, if you order a video from NTV, ycu can expect it in one business day from the time when you placed the order. When you are done with the video, you simply drop it in the prepaid maling envelope and retum it. Al videos arrive in a sorting facility lacated in the Midwest where envelopes with the videos are opened, checked (right video with the right no cracks, no dirt on the videos), and made ready to be sent out again. As the manager of his facility, your goal is to tun the retumed videos around in 6 hours (a shift is 8 hours long). You have the following information: Irwentory cf videos: 420,000 per shift 160,000 per shift a. Calculate the expected average flow time. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. xpected average 0.333 b. What changes would you recommend to meet the goal of processing a returned video within 6hours? Answer is complete but not entirely correct. achieve the desired goal, the throughput from 180,0 233,333Explanation / Answer
a) Expected average flow time (T) = Inventory (WIP) /Throughput (R) (using Little's Law, WIP = R*T)
= 420000/160000
= 2.625 shift
= 2.625*8 hours
= 21 hours
b)
Target flow time (T) = 6 hours = 6/8 shift = 0.75 shift
Target throughput (R) = WIP/T
= 420000/0.75
= 560,000 videos per shift