OPERATIONS MANAGEMENT W/ MYLAB <C> 2018
OPERATIONS MANAGEMENT W/ MYLAB <C> 2018
18th Edition
ISBN: 9781323875476
Author: HEIZER
Publisher: Pearson Custom Publishing
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Chapter 16, Problem 7P
Summary Introduction

To determine: The number of Kanbans

Concept introduction:

The Japanese word for card is termed as Kanban and has critical application in the “Just in Time” concept. The JIT philosophy was developed to reduce the inventory holding costs at various levels of the production chain. The materials are supplied to the process area just when they are needed in a particular operation. Supplying the materials before they are actually needed, adds to inventory carrying costs. It also may result in more space being occupied, additional handling, spoilage, obsolescence and so on.

The Kanban system relies on visual or simple signals to indicate to production systems that the product is needed.

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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 required number of kanbans equals:a) I.b) Demand during lead time I Qc) Size of container.d) Demand d uring lead time.e) Demand during lead time+ Safety stock I Size of container
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 ​$100 per subassembly Daily production 20 subassemblies Annual usage 2,500 ​(50 weeks×5 days each×daily usage of 10 ​subassemblies) Lead time 12 days Safety stock 2 ​days' production   Kanban container size​ = (enter your response here )units ​(round your response to the nearest whole​ number).
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