The Westerville Auto Parts Company produces rocker-arm assemblies for use in the steering and suspen-sion systems of four-wheel-drive trucks. A typical container of parts spends 0.02 day in processing and0.08 day in materials handling and waiting during its manufacturing cycle. The daily demand for the part is2,000 units. Management believes that demand for the rocker-arm assembly is uncertain enough to war-rant a safety stock equivalent of 10 percent of its authorized inventory.a. If 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 waiting time percontainer to 0.06 day. How many containers would be needed?

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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The Westerville Auto Parts Company produces rocker-arm assemblies for use in the steering and suspen-
sion systems of four-wheel-drive trucks. A typical container of parts spends 0.02 day in processing and
0.08 day in materials handling and waiting 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 war-
rant a safety stock equivalent of 10 percent of its authorized inventory.
a. If 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 waiting time per
container to 0.06 day. How many containers would be needed?

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