Question $5(3\mathrm{.}5$ points$)$

The Arco Appliance Company uses a Kanban system to make flanges that are a component used in several of their products. The waiting time for a container of the flanges during production is $0\mathrm{.}40$ day; average processing time is $0\mathrm{.}25$ day per container. Each container holds $100$ flanges. The company uses $1,500$ flanges a day in the production of its products.

The company has a safety stock requirement of $10\%$ of the authorized inventory for flanges. Using the information above, calculate the number of Kanban containers needed for the flanges.

four or fewer

between four and eight

between eight and eleven

eleven or more