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

Question

Quizplus · Accepted Answer

S = (D * C) + (SS * D * C) = (20 * 0.5) + (0.1 * 20 * 0.5) = 10 + 1 = 11 parts

Consider a Work Center with a Demand Rate of 20