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Gingerbread Man Inc. produces short runs of cakes with a daily demand of 500 cakes that are shipped to grocery stores.  The owner, Mr. Pillsbury Doughboy, wants to try to reduce inventory by changing to a Kanban system and decides to use 5 kanbans.  He informs you that his safety stock needs to be 0.5 days and that he requires a production lead time of 3 days.                                                                   What should be the container capacity in this system?

Gingerbread Man Inc. produces short runs of cakes with a daily demand of 500 cakes that are shipped to grocery stores.  The owner, Mr. Pillsbury Doughboy, wants to try to reduce inventory by changing to a Kanban system and decides to use 5 kanbans.  He informs you that his safety stock needs to be 0.5 days and that he requires a production lead time of 3 days.                                                                   What should be the container capacity in this system?

Practical Management Science
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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Gingerbread Man Inc. produces short runs of cakes with a daily demand of 500 cakes that are shipped to grocery stores.  The owner, Mr. Pillsbury Doughboy, wants to try to reduce inventory by changing to a Kanban system and decides to use 5 kanbans.  He informs you that his safety stock needs to be 0.5 days and that he requires a production lead time of 3 days.                                                                  

What should be the container capacity in this system?

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