As each container holds $150$ units, what is the maximum authorized inventory in the machine show $2?$

$4$

$2$

$5$

w

Demand $($from Machine Shop $2)$ units per

day

Average lead time for replenishment of one container per hour

Safety factor

Container size

Working hours per day

DT$(1+$ X$)$

N$=$

C

Machine

Shop $1$

$35,000$

$0\mathrm{.}12$

$0\mathrm{.}15$

$300$

$8$

where

N $=$ Total number of kanbans $($one kanban per container$)$

D $=$ Average usage rate of using work centre

T $=$ Average lead time for replenishment of one container includes wait before

production, setup, production, and transport times$)$

X $=$ Safety factor; usually given as a percentage of average usage D during the