Question

A manufacturing system with a production rate p units/day experiences a demand rate of d units/ day where p>d. Let Q be the maximum production quantity per period. When the total production in a period reaches Q units, the production is stopped and restarted only when inventory becomes zero. In such a scenario, the maximum cycle inventory is

• A. $\frac{p(p-d)}{Q}$
• B. $\frac{Q}{p}(p-d)$
• C. $\frac{Q}{(p-d)}p$
• D. $Q.p.(p-d)$

Answer 1

The correct option is B $\frac{Q}{p}(p-d)$


$I_{max}=t_p(p-d)=\frac{Q}{p}(p-d)$