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Consider a Work Center with a Demand Rate of 50

Question 68

Multiple Choice

Consider a work center with a demand rate of 50 parts per hour and using a container that can hold 12 parts. It is estimated that the container takes 1 hour to cycle through the work cell. Assume a safety stock level of 10 percent. What is the maximum inventory level for this system?


A) 20
B) 40
C) 60
D) Cannot be determined from the information given

Correct Answer:

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