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 decreased by 2 units, what would be the new required safety stock, all else being constant?

A) 10%
B) 20%
C) 0%
D) 15%
E) Need additional information to compute the value