Calculate the Inventory Container Size Required Given the Following: Demand

question 52

Multiple Choice

Calculate the inventory container size required given the following: Demand rate = 10 parts per hour, Safety stock required = 16%
Number of containers = 14, Time to cycle through entire system = 6 hours

• A) 2 parts
• B) 3 parts
• C) 4 parts
• D) 5 parts

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Definitions:

Property Rights

Legal rights to use, transfer, or sell a particular property or resource.

Sustainable Rate

Refers to the level at which a resource can be used without depleting it, ensuring its availability for future generations.

Production Costs

The total expenses incurred in the process of producing or manufacturing goods or services, including raw materials, labor, and overheads.

Property Rights

Legal rights to possess, use, and dispose of assets, including the right to benefit or generate income from them.