Consider a Work Center with a Demand Rate of 50

question 17

Multiple Choice

Consider a work center with a demand rate of 50 parts per hour and using a container that can hold 12 parts. It is estimated that the container takes 1 hour to cycle through the work cell. Assume a safety stock level of 10 percent. What is the value of C for this system?

• A) 50
• B) 12
• C) 1
• D) 0.1

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Definitions:

Balance Per Books

The amount shown in a company's accounting records, as opposed to the actual or adjusted balance that may be shown in a bank statement or other external source.

Company's Balance

Refers to the financial position of a company at a specific point in time, encompassing its assets, liabilities, and equity balances.

Outstanding Checks

These refer to checks that have been written and recorded in the accounting records but have not yet cleared the bank account.

Accounts Receivable

Financial obligations of customers towards a business for items or services offered, payable later.