Consider a work center with a demand rate of 20 parts per hour and using a container that can hold 5 parts. It is estimated that the container takes 30 minutes to cycle through the work cell. Assume a safety stock level of 10 percent. What is the value of S for this system?
a. 5
b. 0.5
c. 0.1
d. 20
c. 0.1
Business
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