Answer:
The correct answer is 33 containers.
Explanation:
The details below are provided in the question:
Wait time in the fabrication cell (w) = 1.2
Daily demand of gears (d) = 559
Policy variable for unforeseen contingencies $ ( α ) = 0.04
Machine time (m) = 2.2 days
Contained size (s) = 60
Therefore, number of containers (N) Jitson authorize for the gear replenishment system will be calculated as;
N = d(w + m) (1 + α) / s
N = 559(1.2 +2.2) (1 + 0.04) / 60
N = 559 (3.4) (1.04) / 60
N = 1976.624 / 60
N = 32.94
Therefore, approximately 33 containers should Jitson authorize for gear replenishment system.