Consider a Work Center with a Demand Rate of 20

Multiple Choice

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 (rounded) value of K for this system?

A) 1
B) 2
C) 3
D) Cannot be determined from the information given