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A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. The process will have a usage rate of 68 pieces per hour. Because the process is new, the manager has assigned an inefficiency factor of .24. Each container holds 42 pieces and it takes an average of 75 minutes to complete a cycle.
a-1. How many containers should be used? (Round up your answer to the next whole number.)
What run quantity should be used to minimize total annual costs? Do not round intermediate calculations. Round your final answer to the nearest whole number.
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