Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 13P
Summary Introduction

Interpretation: The number of kanban cards to be used for production is to be determined.

Concept Introduction:

Kanban is referred to as a scheduling system for lean manufacturing and JIT manufacturing. Lean operation is a process in which a business should focus on continuous improvement with minimum resources and elimination of wastage. It is a process which is adopted by business to work efficiently and wastage must be reduced to the maximum level. It’s main focus is to create customer satisfaction and eliminate implicit cost. It’s principal is to smoothen manufacturing process so that operation of business can be efficiently done. Moreover, delegation of work is important rather than having work load at the same team so that perfection can be attained.

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Krupp Refrigeration, Inc., is trying to reduce inventory and wants you to install a kanban system for compressors on one of itsassembly lines. Determine the size of the kanban and the number of kanbans (containers) needed.Setup cost = $10Annual holding cost per compressor = $100Daily production = 200 compressorsAnnual usage = 25,000 (50 weeks * 5 days each * daily usage of 100 compressors)Lead time = 3 daysSafety stock = 1 2 day’s production of compressors
The following information describes a manufacturing system: Daily demand is 1,025 units. Replenishment lead time is 1.5 days. A 2.5 day safety stock is desired. Products are stored in containers that hold 940 units. How many kanban containers are needed for this system?
Suppose a lean work center is being operated with a container size of 25 units and a demand rate of 100 units per hour. Also assume it takes 180 minutes for a container to circulate.a. How many containers are required to operate this system?b. What is the maximum inventory that can accumulate?c. How many kanban cards are needed?
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