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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 313gears per day. Containers typically wait 1.21 day in the fabrication cell. Each container holds 15 gears, and one container requires 1.5 day in machine time. Setup times are negligible. If the policy variable for unforeseen contingencies is set at 0.03 how many containers should Jitson authorize for the gear replenishment system?

Operation Management, Management Studies

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