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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 140 cups of chocolate chips per week. The average setup and processing time is 1/8 day. Each container holds exactly 2 cups. The current safety stock factor is 9 percent. The baker operates five days per week. a. How many Kanbans are required for the bakery? Round your answer up to the whole number.

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 140 cups of chocolate chips per week. The average setup and processing time is 1/8 day. Each container holds exactly 2 cups. The current safety stock factor is 9 percent. The baker operates five days per week. a. How many Kanbans are required for the bakery? Round your answer up to the whole number.

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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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 140 cups of chocolate chips per week. The average setup and processing time is 1/8 day. Each container holds exactly 2 cups. The current safety stock factor is 9 percent. The baker operates five days per week. a. How many Kanbans are required for the bakery? Round your answer up to the whole number. Kanbans b. What is the maximum authorized inventory? Use the rounded value from the previous question. Round your answer to the nearest whole number. cups C. If the average setup and processing time is increased to 3/4 of a day due to a process change, how many Kanbans are required for the bakery? Round your answer up to the whole number. Kanbans What is the maximum authorized inventory under new conditions? Use the rounded value from the previous question. Round your answer to the nearest whole number. cups
Transcribed Image Text: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 140 cups of chocolate chips per week. The average setup and processing time is 1/8 day. Each container holds exactly 2 cups. The current safety stock factor is 9 percent. The baker operates five days per week. a. How many Kanbans are required for the bakery? Round your answer up to the whole number. Kanbans b. What is the maximum authorized inventory? Use the rounded value from the previous question. Round your answer to the nearest whole number. cups C. If the average setup and processing time is increased to 3/4 of a day due to a process change, how many Kanbans are required for the bakery? Round your answer up to the whole number. Kanbans What is the maximum authorized inventory under new conditions? Use the rounded value from the previous question. Round your answer to the nearest whole number. cups
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