For an assembly line, the inventory was calculated by considering the production rate as 4 pieces per hour and the average processing time as 60 minutes. Now, if the production rate is kept the same and the average processing time is brought down by 30%, then the change in inventory is
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Since $I = R \times T$, if the production rate ($R$) is kept entirely constant, the inventory ($I$) becomes directly proportional to the processing time ($T$):
\[
I \propto T
\]
Therefore, whatever percentage change happens to the processing time will directly map onto the inventory level! A 30% reduction in time directly yields a 30% reduction in stock.
