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 S for this system?
A) 35
B) 10
C) 1
D) 0.2

Question

Quizplus · Accepted Answer

The safety stock level is 20 percent of the container capacity, which is 10 parts. Therefore, S = 10 * 0.2 = 2 parts.

Consider a Work Center with a Demand Rate of 35