Suppose that a proposal to revise the plant layout would cut materials handling and wasting time per…

Determining the Appropriate Number of Containers The Westerville Auto Parts Company produces rocker-arm assemblies for use in the steering and suspension systems of four-Meet-0n* trucks A typical container of parts spends 0.02 day in processing and 0.08 day in materials handling and wafting during its manufacturing cycle. The daily demand for the part is 2,000 units, Management believes that demand for the rocker-arm assembly is uncertain enough to warrant a safety stack equivalent o4 10 percent of its authorized inventory.

a. The each container contains 22 parts, how many containers should be authorized?

b. Suppose that a proposal to revise the plant layout would cut materials handling and wasting time per container to 0.06 day. how many containers would be needed