A lean system has the following characteristics: demand rate = 40 parts per hour; safety stock required = 10%; the container size = 8; lead time to replenish an order = 4 hours.
-If the number of containers is decreased by 2 units, what would be the new required safety stock, all else being constant?
A)10%
B)20%
C)0%
D)15%
E)Need additional information to compute the value

Question

Quizplus · Accepted Answer

If the number of containers is decreased by 2 units, the system would need to adjust by reducing the safety stock to maintain the same level of service. Since the problem states that all else remains constant, the safety stock would effectively be reduced to 0% to compensate for the decrease in containers.

A Lean System Has the Following Characteristics: Demand Rate =