The fabrication department provides a component for the assembly department. The assembly department's usage of the component is 4,800 units per 8-hour day. The fabrication department fills each container with 60 units in 40 minutes. Man- agement has built a 20% cushion into the system. a. How many containers (or kanban cards) should be used for this component? b. Next month, the fabrication department expects its own usage of the component to fall by half, due to an expected decrease in sales of the finished goods requiring that component. Assuming that this change is permanent, how should the number of containers (or kanban cards) used to control this component be adjusted? Rectangu

The fabrication department provides a component for the assembly department. The assembly department's usage of the component is 4,800 units per 8-hour day. The fabrication department fills each container with 60 units in 40 minutes. Man- agement has built a 20% cushion into the system. a. How many containers (or kanban cards) should be used for this component? b. Next month, the fabrication department expects its own usage of the component to fall by half, due to an expected decrease in sales of the finished goods requiring that component. Assuming that this change is permanent, how should the number of containers (or kanban cards) used to control this component be adjusted? Rectangu

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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Concept explainers

Forecasting

Forecasting is a methodology that uses historical data as inputs to make well-informed predictions about the course of future trends. Forecasting is the method of making forecasts based on historical and current data, most commonly by trend analysis. In the business world, forecasting is a basic statistical task. Forecasting is used by businesses to decide how to allocate their budgets or prepare for expected expenditures in the future. Forecasts help managers formulate and execute production plans by providing forecasts. The primary goal of forecasting is to make accurate predictions.

Question

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The fabrication department provides a component for the assembly department.
The assembly department's usage of the component is 4,800 units per 8-hour day.
The fabrication department fills each container with 60 units in 40 minutes. Man-
agement has built a 20% cushion into the system.
a. How many containers (or kanban cards) should be used for this component?
b. Next month, the fabrication department expects its own usage of the component
to fall by half, due to an expected decrease in sales of the finished goods requiring
that component. Assuming that this change is permanent, how should the number
of containers (or kanban cards) used to control this component be adjusted?
Rectangu

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