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%.
-If the demand rate is changed to 50 parts per hour, how many containers should the system be using, all else being constant?
A)10 containers
B)12 containers
C)15 containers
D)20 containers
E)Need additional information to compute the value

Question

Quizplus · Accepted Answer

The number of containers needed can be calculated using the formula: Number of Containers = (Demand Rate * Lead Time * (1 + Safety Stock)) / Container Capacity. Substituting the given values: (50 parts/hour * 3 hours * 1.2) / 12 parts/container = 15 containers.

A Lean System Uses 12 Containers, Each of Which Can