Consider a Work Center with a Demand Rate of 50

question 91

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 maximum inventory level for this system?

• A) 20
• B) 40
• C) 60
• D) Cannot be determined from the information given

---

Definitions:

Competition

The activity or condition of striving to gain or win something by defeating or establishing superiority over others.

Free-Rider Effect

Gaining the benefits of group membership by avoiding costly obligations of membership and by allowing other members to incur those costs.

Self-Interest

The consideration of personal benefit or advantage, which often motivates behavior and decision-making.

Commons Dilemma

A situation in which individual interests conflict with collective well-being, often resulting in the overuse or depletion of shared resources.