A lean system uses 12 containers, each of which can hold 12 parts. The lead time required to round-trip one container through the system is normally 3 hours. The usual safety stock is 20%.
-Calculate the maximum system inventory for this part.
A)36 units
B)40 units
C)144 units
D)80 units
E)480 units

Question

Quizplus · Accepted Answer

The maximum system inventory is the sum of the container inventory and the safety stock. The container inventory is the number of containers multiplied by the number of parts per container. The safety stock is a percentage of the container inventory. In this case, the container inventory is 12 * 12 = 144 parts. The safety stock is 20% of 144 parts, which is 28.8 parts. The maximum system inventory is 144 + 28.8 = 172.8 parts.

A Lean System Uses 12 Containers, Each of Which Can