Lou’s Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 150 cups of chocolate chips per week. The average setup and processing time is ¼ day. Each container holds exactly two cups. The current safety stock factor is 5 percent. The baker operates six days per week. a. How many Kanbans are required for the bakery? b. What is the maximum authorized inventory? c. If the average setup and processing time is increased to 3/8 of a day due to a process change, what are the answers to (a) and (b).
Lou’s Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 150 cups of chocolate chips per week. The average setup and processing time is ¼ day. Each container holds exactly two cups. The current safety stock factor is 5 percent. The baker operates six days per week. a. How many Kanbans are required for the bakery? b. What is the maximum authorized inventory? c. If the average setup and processing time is increased to 3/8 of a day due to a process change, what are the answers to (a) and (b).
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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Lou’s Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 150 cups of chocolate chips per week. The average setup and processing time is ¼ day. Each container holds exactly two cups. The current safety stock factor is 5 percent. The baker operates six days per week.
a. How many Kanbans are required for the bakery?
b. What is the maximum authorized inventory?
c. If the average setup and processing time is increased to 3/8 of a day due to a process change, what are the answers to (a) and (b).
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