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:

Withdrawals

Amounts taken out from a business by its owner(s) for personal use, reducing the owner's capital account.

Net Income

The company's overall earnings following the deduction of all expenses and taxes from its total revenue.

Statement Of Owner's Equity

A report that summarizes the fluctuation in the equity of a business due to profits earned, dividends paid, and capital invested during a specific period.

Income Statement

A financial statement that shows the company's revenues and expenses over a specific period, culminating in the net income or loss for that period.