Principles of Operations Management: Sustainability and Supply Chain Management, Student Value Edition (10th Edition)
10th Edition
ISBN: 9780134183954
Author: HEIZER
Publisher: PEARSON
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Question
Chapter 16, Problem 6P
Summary Introduction
To determine: The number of kanbans needed.
Concept introduction
The Economic Order Quantity is the order quantity at which the overall cost is minimum, given the set up or ordering cost, the annual demand and the inventory holding cost.
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Pauline Found Manufacturing, Inc., is moving tokanbans to support its telephone switching-board assemblylines. Determine the size of the kanban for subassemblies and thenumber of kanbans needed.Setup cost = $30
Annual holding cost = $120 per subassemblyDaily production = 20 subassembliesAnnual usage = 2,500 (50 weeks * 5 days each* daily usage of 10 subassemblies)Lead time = 16 daysSafety stock = 4 days> production of subassemblies
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
Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed.
Setup cost
$30
Annual holding cost
$120
per subassembly
Daily production
40
subassemblies
Annual usage
2,500
(50
weeks×5
days
each×daily
usage of
10
subassemblies)
Lead time
16
days
Safety stock
4
days' production
Part 2
Kanban container size =
enter your response here
units (round your response to the nearest whole number).
Chapter 16 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management, Student Value Edition (10th Edition)
Ch. 16 - Prob. 1EDCh. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - Prob. 9DQ
Ch. 16 - Prob. 10DQCh. 16 - Prob. 11DQCh. 16 - Prob. 12DQCh. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7PCh. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - Prob. 10PCh. 16 - Prob. 1.1VCCh. 16 - Prob. 1.2VCCh. 16 - Prob. 1.3VCCh. 16 - Prob. 2.1VCCh. 16 - Prob. 2.2VCCh. 16 - Prob. 2.3VCCh. 16 - Prob. 2.4VC
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- The demand for milk at a coffee shop is 60 quarts per day. Lead time to replenish inventory is 2 days and the coffee shops want to have ½ of safety stock. If the container size of milk is 10 quarts, what is the Kanban number?arrow_forwardPlease do not give solution in image format thanku Suppose that a lean work center is being operated with a lot size of 50 units. Assume that 200 parts are demanded per hour and it takes three hours to circulate a container, including all setup, run, move, and idle time. A. Calculate the number of kanban containers required. B. What is the maximum inventory that will accumulate? C. What can be done to reduce the inventory level? Suggest alternatives.arrow_forwardMaggie Moylan Motorcycle Corp. uses kanbans tosupport its transmission assembly line. Determine the size of thekanban for the mainshaft assembly and the number of kanbansneeded. Setup cost = $20Annual holding costof mainshaft assembly = $250 per unitDaily production = 300 mainshaftsAnnual usage = 20,000 (= 50 weeks * 5 days each* daily usage of 80 mainshafts)Lead time = 3 daysSafety stock = 1 2 day>s production of mainshaftsarrow_forward
- DETERMINING THE NUMBER OF KANBAN CONTAINERS Hobbs Bakery produces short runs of cakes that are shipped to grocery stores. The owner, Ken Hobbs,wants to try to reduce inventory by changing to a kanban system. He has developed the following dataand asked you to finish the project.Production lead time = Wait time + Material handling time + Processing time = 2 daysDaily demand = 500 cakesSafety stock = 12 dayContainer size (determined on a production order size EOQ basis) = 250 cakesarrow_forwardSuppose that a lean work center is being operated with a lot size of 50 units. Assume that 200 parts are demanded per hour and it takes three hours to circulate a container, including all setup, run, move, andidle time. a. Calculate the number of kanban containers required. b. What is the maximum inventory that will accumulate? c. What can be done to reduce the inventory level? Suggest alternatives.arrow_forwardGiven the following information about a product atMichael Gibson’s firm, what is the appropriate setup time?Annual demand = 39,000 unitsDaily demand = 150 unitsDaily production = 1,000 unitsDesired lot size = 150 unitsHolding cost per unit per year = $10Setup labor cost per hour = $40arrow_forward
- A company has an annual demand for a product of 2000 units, a carrying cost of $20 per unit per year, and a setup cost of $100. Through a program of setup reduction, the setup cost is reduced to $20. Run costs are $2 per unit. Calculate: The EOQ before setup reduction. The EOQ after setup reduction. The total and unit cost before and after setup reduction.arrow_forwardAnnual demand is 3000 units. Lead time is 4/5 day. Safety stock is 4/3 day. Kanban size is 90 units. Find out no. of Kanban requiredarrow_forwardTitan fitness produces custom barbells for crossfitters. The owner, Ed, has asked you to reduce inventory by introducing a kanban system. After several hours of analysis, you developed the following data for a barbell part used in one work cell. How many kanbans do you need for this connector?arrow_forward
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