Meritor, a company that makes muffler assemblies for the automotive industry, is committed to the use of kanban to pull material through its manufacturing cells. Meritor has designed each cell to fabricate a specific family of muffler products. Fabricating a muffler assembly involves cutting and bending pieces of pipe that are welded to a muffler and a catalytic converter. The mufflers and catalytic converters are pulled into the cell based on current demand. The catalytic converters are made in a specialized cell. Catalytic converters are made in batches of 10 units and are moved in special hand carts to the fabrication cells. The catalytic converter cell is designed so that different types of catalytic converters can be made with virtually no setup loss. Meritor hires a team of consultants. The consultants suggest a partial robotic automation as well as the safety stock to be 8 percent. Meritor implements these suggestions. The result is an increase in efficiency in both the fabrication of muffler assembly and the making of catalytic converters. The muffler assembly fabrication cell averages 15 assemblies per hour and the lead time is two hours' response time for a batch of 10 catalytic converters. How many kanban cards are needed? (Round up your answer to the next whole number.) Number of kanban card sets

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Problem 14-17 (Algo)
Meritor, a company that makes muffler assemblies for the automotive industry, is committed to the use of kanban to pull material
through its manufacturing cells. Meritor has designed each cell to fabricate a specific family of muffler products. Fabricating a muffler
assembly involves cutting and bending pieces of pipe that are welded to a muffler and a catalytic converter. The mufflers and catalytic
converters are pulled into the cell based on current demand. The catalytic converters are made in a specialized cell.
Catalytic converters are made in batches of 10 units and are moved in special hand carts to the fabrication cells. The catalytic
converter cell is designed so that different types of catalytic converters can be made with virtually no setup loss.
Meritor hires a team of consultants. The consultants suggest a partial robotic automation as well as the safety stock to be 8 percent.
Meritor implements these suggestions. The result is an increase in efficiency in both the fabrication of muffler assembly and the
making of catalytic converters. The muffler assembly fabrication cell averages 15 assemblies per hour and the lead time is two hours
response time for a batch of 10 catalytic converters. How many kanban cards are needed? (Round up your answer to the next whole
number.)
Number of kanban card sets
Transcribed Image Text:Problem 14-17 (Algo) Meritor, a company that makes muffler assemblies for the automotive industry, is committed to the use of kanban to pull material through its manufacturing cells. Meritor has designed each cell to fabricate a specific family of muffler products. Fabricating a muffler assembly involves cutting and bending pieces of pipe that are welded to a muffler and a catalytic converter. The mufflers and catalytic converters are pulled into the cell based on current demand. The catalytic converters are made in a specialized cell. Catalytic converters are made in batches of 10 units and are moved in special hand carts to the fabrication cells. The catalytic converter cell is designed so that different types of catalytic converters can be made with virtually no setup loss. Meritor hires a team of consultants. The consultants suggest a partial robotic automation as well as the safety stock to be 8 percent. Meritor implements these suggestions. The result is an increase in efficiency in both the fabrication of muffler assembly and the making of catalytic converters. The muffler assembly fabrication cell averages 15 assemblies per hour and the lead time is two hours response time for a batch of 10 catalytic converters. How many kanban cards are needed? (Round up your answer to the next whole number.) Number of kanban card sets
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing for Spoilage, rework and scrap
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education