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The average daily demand for component B is 750 units. The average time for waiting during the production process and materials handling is
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The average daily demand for component B is 750 units. The average time for waiting during the production process and materials handling is 0.15 days. Processing time per container is 0.1 days. The container capacity is 50 units and the policy variable is 5%. What number of containers is required for component B?
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2021-08-19T03:52:24+00:00
2021-08-19T03:52:24+00:00 2 Answers
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Answer: 4
Explanation:
daily demand(d) = 750 unjts
Policy variable(¢) = 5/100 = 0.05
Waiting time(w) = 0.15 days
Container capacity(c) = 50 units
Processing time per container(p) = 0.1 days
k = number of containers
Using the formula:
k = [d(w + p)(1 + ¢)] ÷ c
k = [750(0.15 + 0.1) × (1 + 0.05)] ÷ 50
k = [750(0.25) × (1.05)] ÷ 50
k = 196.875 ÷ 50
k = 3.9375 = approximately 4 containers
Answer:
4 containers
Explanation:
Given
Average daily demand, d= 750 units
Average time for waiting during production and materials handling, w = 0.15 days
Processing time per container, t = 0.1 days
Container capacity, c = 50 units
Policy variable, α = 5% = 0.05
Number of containers required for component B is calculated as follows;
Total Production/Container Capacity.
Total Production = d(w + t)(1 + α)
Total Production = 750 * (0.15 + 0.1) * (1 + 0.05)
Total Production = 196.875
Number of containers = 196.875/50
Number of containers = 3.9375
Number of containers = 4 — approximated