Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 15CQ
Summary Introduction
To identify: The objective that is more important in a pull system.
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Jitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc., and arrive in boxes of 48. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-level shelves. Depletion of the lower-shelf inventory signals the need to take down a box of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize replenishment of a container of action figures. The average demand rate for a popular action figure, Agent 99, is 36 units per day. The total lead time (waiting plus processing) is 11 days. Jitsmart’s safety stocky policy variable, a, is 0.25. What is the authorized stock levelfor Jitsmart?
Jitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc., and arrive in boxes of 20. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-level shelves. Depletion of the lower-shelf inventory signals the need to take down a box
of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize replenishment of a container of action figures. The average demand rate for a popular action figure, Agent 99, is 18 units per day. The total lead time (waiting plus processing) is 2 days. Jitsmart's safety
stocky policy variable, a, is 0.05.
What is the authorized stock level for Jitsmart? units. (Enter your response rounded to the nearest whole number.)
Increasing the turnover of finished goods inventory will increase the operating cycle
Select one:
True
False
Chapter 8 Solutions
Operations Management
Ch. 8 - Prob. 1CQCh. 8 - Prob. 2CQCh. 8 - Prob. 3CQCh. 8 - Prob. 4CQCh. 8 - Prob. 5CQCh. 8 - Prob. 6CQCh. 8 - Prob. 7CQCh. 8 - Prob. 8CQCh. 8 - What are the two pillars of the Toyota Production...Ch. 8 - Prob. 10CQ
Ch. 8 - Prob. 11CQCh. 8 - Prob. 12CQCh. 8 - Prob. 13CQCh. 8 - Prob. 14CQCh. 8 - Prob. 15CQCh. 8 - Prob. 16CQCh. 8 - Prob. 17CQCh. 8 - Prob. 18CQCh. 8 - Prob. 19CQCh. 8 - A company makes two models, A and B. Which of the...Ch. 8 - Prob. 21CQCh. 8 - Prob. 22CQCh. 8 - Prob. 23CQCh. 8 - Prob. 24CQCh. 8 - Prob. 25CQCh. 8 - Prob. 26CQCh. 8 - Prob. 1PACh. 8 - Prob. 2PACh. 8 - Prob. 3PACh. 8 - Prob. 4PACh. 8 - Prob. 5PACh. 8 - Prob. 6PACh. 8 - Prob. 7PACh. 8 - Prob. 8PACh. 8 - Prob. 9PACh. 8 - Prob. 10PA
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- Better eliminate waste of over processing is a direct benefit related to a pull system. True or Falsearrow_forwardJitsmsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc. and arrive in boxes of 48. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-levels shelves. Depletion of the lower-shelf inventory signals the need to take down a box of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize the replenishment of a container of action figures. The average demand rate for popular action figure, Agent 99, is 36 units per day. The total lead time (waiting plus processing) is 11 days. Jitsmart's safety stocky policy variables 0.25. What is the authorized stock level for Jitsmart?arrow_forwardMarkland First National Bank of Rolla utilizes kanban techniques in its check processing facility. The following information is known about the process. Each kanban container can hold 50 checks and spends 24 minutes a day in processing and 2 hours a day in materials handling and waiting. Finally, the facility operates 24 hours per day and utilizes a policy variable for unforeseen contingencies of 0.25.a. If there are 20 kanban containers in use, what is the current daily demand of the check processing facility?b. If the muda or the waste in the system were eliminated completely, how many containers would then be needed?arrow_forward
- Markland First National Bank of Rolla utilizes kanban techniques in its check processing facility. The following information is known about the process. Each kanban container can hold 25 checks and spends 24 minutes a day in processing and 2 hours a day in materials handling and waiting. Finally, the facility operates 24 hours per day and utilizes a policy variable for unforeseen contingencies of 0.20. a. If there are 29 kanban containers in use, the current daily demand of the check processing facility is units. (Enter your response rounded to the nearest whole number.)arrow_forwardMarkland First National Bank of Rolla utilizes kanban techniques in its check processing facility. The following information is known about the process. Each kanban container can hold 25 checks and spends 24 minutes a day in processing and 2 hours a day in materials handling and waiting. Finally, the facility operates 24 hours per day and utilizes a policy variable for unforeseen contingencies of 0.20. a. If there are 29 kanban containers in use, the current daily demand of the check processing facility is 6,000 units. (Enter your response rounded to the nearest whole number.) b. If the muda or the waste in the system were eliminated completely, whole number.) containers would then be needed. (Enter your response rounded up to the nextarrow_forwardIn a large microelectronics plant, the assembly cell for circuitboards has a demand for 200 units an hour. Two feeder cellssupply parts A and B to the assembly cell (one A and one Bfor each board). Standard containers that look like dividedtrays are used. A container will hold 20 As or 10 Bs. It takes10 minutes to fill up a container with As and 20 minutes tofill up a container with Bs. Transit time to the assembly cell is5 minutes for both A and B. No safety factor is used. Set up akanban control system for the assembly process.arrow_forward
- Tej Dhakar’s company wants to establish kanbans tofeed a newly established work cell. The following data have beenprovided. How many kanbans are needed?Daily demand 250 unitsLead time 12 daySafety stock 14 dayKanban size 50 unitsarrow_forwardIn which ways, if any, are the following systems analogous to kanban: returning empty bottles to the supermarket and picking up i lled ones; running a hot dog stand at lunchtime; withdrawing money from a checking account; raking leaves into bags?arrow_forwardThe Northridge Company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Northridge Company doesn’t have one available immediately. Northridge Company’s current policy to produce the product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up the production for product K for the next week and states that he has capacity available to produce 300 at a time next week. The following lists the forecasts and actual customer orders for the next 12 weeks. Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 90 120 110 80 85 95 100 110 90 90 100 110 Customer Orders 105 97 93 72 98 72 53 21…arrow_forward
- A supplier provides parts to a manufacturing company that demands frequent deliveries. At the present time it takes six hours to make a round trip between the supplier’s warehouse and the customer, including loading, travel, and unloading time. The lot size is 12 pallet loads on a truck, and the manufacturer uses 2 pallets per hour.a. How many trucks are needed to ship the pallets to the manufacturer?b. What is likely to happen if the truck breaks down?c. How can the supplier ensure that the customer does not run out of parts even in the face of delivery problems or other uncertainties?d. What will happen to the supplier if the manufacturer runs into trouble and shuts down for a period of six hours?arrow_forwardIn which ways, if any, are the following systems analogous to kanban: returning empty bottles to the supermarket and picking up filled ones; running a hot dog stand at lunch- time; withdrawing money from a checking account; raking leaves into bags?arrow_forwardIn which ways, if any, are the following systems analogous to kanban: returning empty bottles to the supermarket and picking up filled ones; running a hot dog stand at lunchtime; withdrawing money from a checking account; raking leaves into bags?arrow_forward
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