a)
To determine: The number of trucks needed.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
b)
To determine: The consequences when the truck breaks down.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
c)
To determine: The way to ensure that the customer does not run out of parts even when there are delivery problems or other uncertainties.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
d)
To determine: The consequences to the supplier if the customer runs into trouble and shuts down for six hours.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
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OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
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- Carol 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 $25 per hour Annual holding cost $12 per unit Daily production 960 units/8 hour day Annual demand 45,360 (270 days each×daily demand of 168 units) Desired lot size 120 units (one hour of production) Part 2 To obtain the desired lot size, the set-up time that should be achieved = enter your response here minutes (round your response to two decimal places).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 Daily production Annual demand Desired lot size $25 per hour $12 per unit 992 units/8 hour day 24,840 (270 days each x daily demand of 92 units) 124 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_forwardJustify why a reduction in setup time will result in a reduction in the average amount of inventory held by a business.arrow_forward
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- Problem 2: Perkins Lighting wishes to employ a kanban in their new floor lamp production system. For the floor lamp base, they have provided the following information: Daily demand 300 units Holding cost $20/unit/year Order cost $10/order Lead time 2 days Safety stock 600 units Find the size of the kanban and the number of kanbans required.arrow_forward31 A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported six at a time. A fabrication center produces approximately 10 gauges per hour. It takes approximately three hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 10 percent of the needed inventory as safety stock. How many kanban card sets are needed? Note: Round up your answer to the next whole number.arrow_forwardAnnual physical inventories usually do not require shutdown of production facility. O True O Falsearrow_forward
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