Question

A lean work center is being operated with a lot size of 50 units. Assume the demand rate is 200 parts per hour. It takes three hours to circulate a container, that includes all set up, run, move, and idle time. What is the maximum inventory that will accumulate in the system

Answer 1

Answer: 600

Step-by-step explanation:

Based on the information given in the question, the maximum inventory that will accumulate in the system will be calculated as the product of the demand and the lead time. This will be:

= Demand × Lead Time

= 200 × 3

= 600

Therefore, the maximum inventory is 600.