Suppose that mountain bikes are produced at a factory at the rate of 10 bikes per hour.
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Question:
Suppose that mountain bikes are produced at a factory at the rate of 10 bikes per hour. In the production process, there are three steps completed in sequence:
• Build frame (5 minutes per bike)
• Paint frame (4 minutes per bike)
• Assembly (3 minutes per bike)
What is the minimum amount of inventory contained within the production process in order to maintain that rate of production? Choose one answer.
(a) 1.67 bikes
(b) 120 bikes
(c) 12 bikes
(d) 2 bikes
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