 # A regional Home Depot office issues approximately 1500 PO's per 40 hour work week to its suppliers. Through data collection, it is determined that the average value add time for a PO is 30 minutes. Assuming a Home Depot has world-class business processess, what is the lead time for any given PO to be issued? How many PO's would we expect to be in process at any given time? Javion Henry 2022-07-30 Answered
A regional Home Depot office issues approximately 1500 PO's per 40 hour work week to its suppliers. Through data collection, it is determined that the average value add time for a PO is 30 minutes. Assuming a Home Depot has world-class business processess, what is the lead time for any given PO to be issued? How many PO's would we expect to be in process at any given time?
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$\frac{1500P{O}^{\prime }s}{40hours}=37.5\frac{P{O}^{\prime }s}{hour}\approx 38\frac{P{O}^{\prime }s}{hour}$ So you're making approximately 38PO's in a work week.
1PO=30 minutes on average
$\frac{38\frac{P{O}^{\prime }s}{hour}}{30minutes}\approx 1.3$ hours for any given PO to be issued
At any given time you should expect at 1 PO to be inprocess