Matching Supply with Demand Chapter 2 Q26 thanksSolutionQ26

Matching Supply with Demand Chapter 2, Q2-6, thanks.

Solution

Q2.6. Highway

We look at 1 mile of highway as our process. Since the speed is 60 miles per hour, it takes a car 1 minute to travel through the process (flow time).
There are 24 cars on ¼ of a mile, i.e. there are 96 cars on the 1 mile stretch (inventory).
Inventory=Flow Rate x Flow Time: 96 cars = Flow Rate x 1 minute
Thus, the Flow Rate is 96 cars per minute, corresponding to 96 x 60 = 5760 cars per hour.