For an assembly line, the production rate was 4 pieces per hour and th – McqOptions

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1.	For an assembly line, the production rate was 4 pieces per hour and the average processing time was 60 minutes. The WIP inventory was calculated. Now, the production rate is kept the same, and the average processing time is brought down by 30 percent. As a result of this change in the processing time, the WIP inventory.
A.	decreases by 25%
B.	increase by 25%
C.	decreases by 30%
D.	increase by 30%
Answer» D. increase by 30%

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