A Lean System Has the Following Characteristics: Demand Rate =

Multiple Choice

A lean system has the following characteristics: demand rate = 40 parts per hour; safety stock required = 10%; the container size = 8; lead time to replenish an order = 4 hours.
-If the number of containers is reduced by 2 units, what would be the new required round-trip time, all else being constant?

A) 3.64 hours
B) 3.83 hours
C) 4 hours
D) 4.4 hours
E) Need additional information to compute the value