Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Question
Chapter 8.6, Problem 37P
(a)
Summary Introduction
Interpretation:The total number of kanban tickets is to be calculated.
Concept Introduction:
The following formulas will be used −
(b)
Summary Introduction
Interpretation: The maximum WIP inventory that company can expect is to be calculated.
Concept Introduction:
The following formulas will be used −
(c)
Summary Introduction
Interpretation: The annual carrying cost of WIP inventory that company is incurring is to be calculated.
Concept Introduction:
The following formulas will be used −
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A regional manufacturer of table lamps plans on using a manual kanban information system. On average the firm produces 1,200 lamps monthly. Production leadtime is 18 days, and the firm plans to have 15 percent buffer stock. Assume 20 working days per month.a. If each container holds 15 lamps, what will be the total number of kanbantickets required? (Use the formula given in this section.)
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?
A regional manufacturer of table lamps plans on using a manual kanban information system. On average the firm produces 1,200 lamps monthly. Production lead time is 18 days, and the firm plans to have 15 percent buffer stock.Assume 20 working days per month.a. If each container holds 15 lamps, what will be the total number of kanban tickets required?b. What is the maximum WIP inventory the company can expect to have using this system?c. Suppose that each lamp costs the firm $30 to produce. If carrying costs are based on a 20 percent annual interest rate, what annual carrying cost for WIP inventory is the company incurring?
Chapter 8 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 8.1 - Prob. 1PCh. 8.1 - Prob. 2PCh. 8.1 - Prob. 3PCh. 8.1 - Prob. 4PCh. 8.1 - Prob. 5PCh. 8.1 - Prob. 6PCh. 8.1 - Prob. 7PCh. 8.1 - Prob. 8PCh. 8.1 - Prob. 9PCh. 8.2 - Prob. 10P
Ch. 8.2 - Prob. 11PCh. 8.2 - Prob. 12PCh. 8.2 - Prob. 13PCh. 8.2 - Prob. 14PCh. 8.2 - Prob. 15PCh. 8.2 - Prob. 16PCh. 8.2 - Prob. 17PCh. 8.2 - Prob. 18PCh. 8.2 - Prob. 19PCh. 8.2 - Prob. 20PCh. 8.2 - Prob. 21PCh. 8.2 - Prob. 22PCh. 8.3 - Prob. 23PCh. 8.3 - Prob. 24PCh. 8.3 - Prob. 25PCh. 8.4 - Prob. 26PCh. 8.4 - Prob. 27PCh. 8.4 - Prob. 28PCh. 8.4 - Prob. 29PCh. 8.5 - Prob. 30PCh. 8.5 - Prob. 31PCh. 8.5 - Prob. 32PCh. 8.5 - Prob. 33PCh. 8.5 - Prob. 34PCh. 8.6 - Prob. 35PCh. 8.6 - Prob. 36PCh. 8.6 - Prob. 37PCh. 8.6 - Prob. 38PCh. 8.6 - Prob. 39PCh. 8.6 - Prob. 40PCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - Prob. 44APCh. 8 - Prob. 45APCh. 8 - Prob. 46APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51AP
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- Sidney's Quick Shop is a convenience store that is near campus and has regular demand for a locally made energy drink. Daily demand is for 117 bottles and it comes in containers of 48 bottles. There is a 3-day lead time for deliveries. Sidney wants to maintain safety stock of 100 bottles. They want to use a kanban system for ordering. How many kanban containers should they have in their system? Note: Round your answer up to the next highest whole unit.arrow_forwardThe 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?arrow_forwardIf the demand per day is 100, the lead time is 5 days, safety stock is 50, and the container size is 55, what is the Kanban number? If the lead time improves to 4 days, what is the Kanban Number?arrow_forward
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- Bracket Manufacturing uses a Kanban system for a component. Daily demand is 1,100 units. Each container has a combined waiting and processing time of 0.65 days. If the container size is 90 and the alpha value (α) is 13%, how many Kanban card sets should be authorized? Round your answer up to the whole number. Kanban card set(s) What is the maximum authorized inventory? Use the rounded value from the previous question. Round your answer to the nearest whole number. unit(s)arrow_forwardA regional manufacturer of table lamps plans on using a manual kanban information system. On average the firm produces 1,200 lamps monthly. Production leadtime is 18 days, and the firm plans to have 15 percent buffer stock. Assume 20 working days per month.b. What is the maximum WIP inventory the company can expect to have usingthis system?arrow_forwardDETERMINING 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_forward
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