A workstation must produce 400 units an hour.It takes 24 minutes to receive the necessary material for production from the previous workstation.Output is moved between workstations in containers holding 44 units.If the process uses a safety factor of 10%,then the amount of safety stock on average would be
A)16
B)32
C)8
D)60

Question

Quizplus · Accepted Answer

The safety stock is calculated as the safety factor multiplied by the average demand during the lead time. The lead time is 24 minutes, and the demand rate is 400 units per hour, which is approximately 160 units in 24 minutes. With a 10% safety factor, the safety stock is 10% of 160, which is 16 units.

A Workstation Must Produce 400 Units an Hour