A lean system has the following characteristics: Demand rate = 20 parts per hour; safety stock required

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A lean system has the following characteristics:

Demand rate = 20 parts per hour; safety stock required = 5 percent; number of containers used = 14; lead time to replenish an order = 6 hours.

a) Calculate the container size for the 14 containers.

b) Calculate the maximum system inventories.

c) If the required safety stock was changed to zero, what impact would this have on the container size?

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