A fabrication cell at​ Spradley's Sprockets uses the pull method to supply gears to an assembly line. George Jitson is in charge of the assembly​ line, which requires 559 gears per day. Containers typically wait 1.2 day in the fabrication cell. Each container holds 60 ​gears, and one container requires 2.2 day in machine time. Setup times are negligible. If the policy variable for unforeseen contingencies is set at 0.04​, how many containers should Jitson authorize for the gear replenishment​ system?

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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.

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