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 C for this system?
A) 5
B) 0.5
C) 0.1
D) 20

Question

Quizplus · Accepted Answer

The value of C, the number of containers, is calculated using the formula: C = (Demand rate * Cycle time * (1 + Safety stock percentage)) / Container size. Here, C = (20 parts/hour * 0.5 hours * 1.1) / 5 parts = 5.

Consider a Work Center with a Demand Rate of 20