Calculate the Inventory Container Size Required Given the Following

question 30

Multiple Choice

Calculate the inventory container size required given the following:
Demand rate = 10 parts per hour,Safety stock required = 15%
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:

Treasury Stock Approach

A method of accounting for repurchased shares of a company's own stock, treating them as treasury stock and reducing the company's equity.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable to the parent company, representing outside investors' ownership.

Net Income

The total earnings of a company after subtracting all expenses from revenue.

Goodwill

The value attributed to a company's brand name, customer base, customer relations, employee relations, and patents or proprietary technology.