Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 6P
Summary Introduction

Interpretation: Permission granted by second type of card is to be determined.

Concept Introduction: Kanban:

Since inventories are located in several locations in a large production unit; it will be very difficult to track the inventories. Proper monitoring of the bins is essential. Kanban system uses different cards to signal and regulate the production of a plant.

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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 $16 Annual holding cost subassembly $250 per subassembly 600 subassemblies Daily production Annual usage 62,500 (-50 weeks x5 days each x daily usage of 250 subassemblies) Lead time Safety stock The kanban size is (round your response to the nearest whole number). 2 days 1 day's production of subassemblies
Krupp Refrigeration, Inc., is trying to reduce inventory and wants you to install a kanban system for compressors on one of itsassembly lines. Determine the size of the kanban and the number of kanbans (containers) needed.Setup cost = $10Annual holding cost per compressor = $100Daily production = 200 compressorsAnnual usage = 25,000 (50 weeks * 5 days each * daily usage of 100 compressors)Lead time = 3 daysSafety stock = 1 2 day’s production of compressors
The required number of kanbans equals:a) I.b) Demand during lead time I Qc) Size of container.d) Demand d uring lead time.e) Demand during lead time+ Safety stock I Size of container
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