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

Question

Quizplus · Accepted Answer

The inventory container size can be calculated using the formula: Container Size = (Demand Rate * Time to Cycle * (1 + Safety Stock)) / Number of Containers. Plugging in the values: (10 parts/hour * 6 hours * 1.15) / 14 containers = 5 parts per container.

Calculate the Inventory Container Size Required Given the Following