An Integrated Electronic-Chip Manufacturer Has a Demand for a Specific

Multiple Choice

An integrated electronic-chip manufacturer has a demand for a specific component of 800 parts per 8-hour day. The manufacturer wants to design a lean system using containers. The containers the manufacturer used for this component held 20 parts. It takes about 4 hours to round-trip a container from one work center to the next and back again. The manufacturer also wants to hold 10% of safety stock of this part in its system.
-If the required safety stock were changed to zero and 20 containers were used in the system, calculate the maximum inventory for this part.

A) 88 units
B) 400 units
C) 240 units
D) 800 units
E) 440 units