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 T for this system?
A) 50
B) 12
C) 1
D) 0.1

Question

Quizplus · Accepted Answer

T is the time it takes to produce and fill a container. Since the container size is 12 parts and demand rate is 50 parts per hour, it will take T hours to fill a container:
12/T = 50
T = 0.24 hours or 14.4 minutes
Adding the safety stock level, the total number of containers needed is:
10% x 12 = 1.2 or 2 containers
Therefore, the value of T for this system is 2 x 0.24 = 0.48 hours or 28.8 minutes, which is closest to choice C.

Consider a Work Center with a Demand Rate of 50