Consider a Work Center with a Demand Rate of 50

question 44

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 K for this system?

• A) 2
• B) 4
• C) 5
• D) Cannot be determined from the information given

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Definitions:

Deductible Expenses

Expenses eligible to reduce taxable income, subject to various tax rules and limitations.

Supplies Expenses

Costs incurred by a business for items that are used and consumed in the business operations, typically within a short period.

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