Consider a Work Center with a Demand Rate of 20

question 76

Multiple Choice

Consider a work center with a demand rate of 20 parts per hour and using a container that can hold 5 parts. It is estimated that the container takes 30 minutes to cycle through the work cell. Assume a safety stock level of 10 percent. What is the value of S for this system?

• A) 5
• B) 0.5
• C) 0.1
• D) 20

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