3. A lean system has 22 containers, each of which can hold 18 parts. The lead time required to round-trip one container through the system is four hours. The required safety stock is 10 percent.

a. What is the maximum demand rate this system can accommodate? Do not round intermediate calculations. Round your answer to the nearest whole number.

b. The company wants to accommodate double the maximum demand rate found in (a). What are all the ways the system could be changed to accomplish this?

1. Reduce S to 5%
2. Double # of containers
3. Reduce T to 2 hr.
4. Increase C to 36 parts

4. Jim Corner, owner of Corner Bike Rentals, wants to start analyzing his company's quality. For each bike rental, there are four types of customer complaints: (1) bike not working properly, (2) bike wrong size, (3) bike uncomfortable, and (4) bike broken during operation. During the past week, his company rented 283 bikes. He received 30 total complaints.

a. What is his company's DPMO for the past week? Do not round intermediate calculations. Round your answer to the nearest whole number.

b. Using Table 8.4, what is their Six Sigma operating level?

c. If Jim wanted to operate at the 5 sigma level, what would his errors have needed to be over the past week? Do not round intermediate calculations. Round your answer to three decimal places.