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 unrounded value of K for this system?
a. 1.2
b. 2.2
c. 3.2
d. Cannot be determined from the information given
b. 2.2
You might also like to view...
Explain the value of knowing an audience in preparing a presentation
Homosexuals may be employed in ________
a) the military b) public schools c) day care centers d) all e) a&b
You have taken a job in industry and are facing your first ordering decision. As you prepare to place the order, you remember your instructor teaching you that you wouldn't use the EOQ formula if:
A) you followed a make-to-stock strategy for an item with stable demand. B) your carrying costs and ordering costs are known and relatively stable. C) the order size is constrained by capacity limitations such as the number or size of the delivery trucks. D) your setup costs and holding costs remain constant and can be determined.
Raising new capital through the sale of common equity is an example of which cash-related activity in the cash flow cycle?
A) Operating activity B) Profitability activity C) Investing activity D) Financing activity