Concept explainers
(a)
Interpretation: Number of Kanban card sets needs to be determined based on the given information.
Concept Introduction: A Kanban is important tool used in JIT system, it is a card that has all the relevant information such as order number, delivery time, delivered quantity, production quantity and so on, to make production operations efficient and waste free.
(b)
Interpretation: Maximum authorized inventory needs to be determined based on the given information.
Concept Introduction: A Kanban is important tool used in JIT system, it is a card that has all the relevant information such as order number, delivery time, delivered quantity, production quantity and so on, to make production operations efficient and waste free.
(c)
Interpretation: Pros and Cons of high value of alpha such as 1 needs to discussed
Concept Introduction: A Kanban is important tool used in JIT system, it is a card that has all the relevant information such as order number, delivery time, delivered quantity, production quantity and so on, to make production operations efficient and waste free.
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Check out a sample textbook solution- Cletus and Spike Company is implementing a Kanban system for a heated water bowl manufacturing line that produces 1,500 units in an eight-hour day. The heating element has a waiting time of 30 minutes and a processing time of one hour. The container size is 40 heating elements, and the safety factor is 15 percent. How many Kanban cards should be used? a. 9 b. 12 c. 2 d. 27arrow_forwardTransmissions are delivered to the fabrication line three at a time. It takes two hour for transmissions to be delivered. Approximately three vehicles are produced each hour, and management has decided that 50 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed? (Round up your answer to the nearest whole number.)arrow_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, 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_forward
- 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 $125 per subassembly Daily production 30 subassemblies Annual usage 3,000 (50 weeks×5 days each×daily usage of 12 subassemblies) Lead time 12 days Safety stock 4 days' production Part 2 Kanban container size = enter your response here units (round your response to the nearest whole 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_forwardHartley Electronics, Inc., in Nashville, producesshort runs of custom airwave scanners for the defense industry.The owner, Janet Hartley, has asked you to reduce inventory byintroducing a kanban system. After several hours of analysis, youdevelop the following data for scanner connectors used in onework cell. How many kanbans do you need for this connector?arrow_forward
- A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of the expected demand. How many kanban cards are needed?arrow_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_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
- Tej Dhakar's company wants to establish kanbans to feed a newly established work cell. The following data have been provided. Note: This is a level production system. Daily demand 275 units Production lead time 0.50 day Safety stock 0.25 day Kanban size 50 units How many kanbans are needed? enter your response here kanbans (round your response to the nearest whole number).arrow_forwardThe 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_forwardOne inherent risk to using lean principles is that companies are at higher risk of inventory shortages during volatile times caused by strikes, adverse weather, etc., than when using traditional manufacturing principles. True Falsearrow_forward
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