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- Flores Manufacturing, Inc., is moving to kanbans to support its electronic-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost Annual holding cost subassembly Daily production Annual usage Lead time Safety stock $23 $200 per subassembly 550 subassemblies 50,000 (= 50 weeks x 5 days each x daily usage of 200 subassemblies) 3 days 1 day's production of subassemblies The kanban size is (round your response to the nearest whole number). The number of kanbans is (round your response to the nearest whole number).arrow_forwardCarol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost Annual holding cost $30 per hour $13 per unit 960 units/8 hour day 36,000 (250 days each x daily demand of 144 units) Daily production Annual demand Desired lot size 120 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved = ☐ minutes (round your response to two decimal places).arrow_forwardTooltron Manufacturing uses a Kanban system for a component. Daily demand is 410 units. Each container has a combined waiting and processing time of 1.6 days. If the container size is 30 and the alpha value (a) is 17 percent, how many Kanban card sets should be authorized? Round your answer up to the whole number. Kanban cards What is the maximum authorized inventory? Use the rounded value from the previous question. Round your answer to the nearest whole number. unitsarrow_forward
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