Darden Company uses a kanban loop to control SKU #303, which is produced on stamping machines. They have six kanban cards circulating in the loop. Next month Darden will replace its stamping machines with a newer technology that can pro- duce SKU #303 at twice the speed of the current machines. Darden uses a policy variable of 10% when determining the number of cards in a kanban loop, and a container of SKU #303 holds 55 units, while Darden uses an average of 600 units of SKU #303 every hour. a. Assuming that Darden Company is using the optimal number of kanbans for cur- rent conditions, how long does it take to fill one container with SKU # 303? b. How should Darden change the kanban loop next month, after the installation of the new machinery?

Darden Company uses a kanban loop to control SKU #303, which is produced on stamping machines. They have six kanban cards circulating in the loop. Next month Darden will replace its stamping machines with a newer technology that can pro- duce SKU #303 at twice the speed of the current machines. Darden uses a policy variable of 10% when determining the number of cards in a kanban loop, and a container of SKU #303 holds 55 units, while Darden uses an average of 600 units of SKU #303 every hour. a. Assuming that Darden Company is using the optimal number of kanbans for cur- rent conditions, how long does it take to fill one container with SKU # 303? b. How should Darden change the kanban loop next month, after the installation of the new machinery?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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