Consider a work center with a demand rate of 35 parts per hour and using a container that can hold 10 parts. It is estimated that the container takes 1 hour to cycle through the work cell. Assume a safety stock level of 20 percent. What is the value of T (time) for this system?
A) 35
B) 10
C) 1
D) 0.2

Question

Quizplus · Accepted Answer

To calculate T, we need to use Little's Law: T = WIP / average demand rate.
WIP (work in process) = container size + safety stock level = 10 + (0.2 * 35) = 17.
Average demand rate = (demand rate / container size) * cycle time = (35/10) * 1 = 3.5.
Therefore, T = 17 / 3.5 = 4.86, which rounds up to 5. 
Since T represents time, the best choice is C, which represents 1 hour as the time it takes for a container to cycle through the work cell.

Consider a Work Center with a Demand Rate of 35