EBK OM
EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
Question
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Chapter 17, Problem 14PA

(a)

Summary Introduction

Interpretation:

Total number of Kanbans required

Concept Introduction:

In the Just-In-Time (JIT) system, the material is purchased and goods and services are generated in a sufficient amount. JIT is a part of the inventory and production management. It is very reliable in satisfying the actual demand of the customers and can reduce waste and error at the same time.

(a)

Expert Solution
Check Mark

Explanation of Solution

The total number of the Kanbans can be calculated by the following formula.

  K=D(p+t)(1+γ)C

Where,

  Daily demand (D)=17units/dayProcessing time+waiting time (p+t)= 3.75Container Size (C) = 4Safety factor (γ) = 5% or 0.05

Now, putting the values in the formula.

  K=D( p+t)( 1+γ)CK=17( 3.75)( 1+0.05)4K=17( 3.75)( 1.05)4= 66.934= 16.73=17

Hence, the total number of Kanbans required is 17.

(b)

Summary Introduction

Interpretation:

Maximum authorized router inventory

Concept Introduction:

In the Just-In-Time (JIT) system, the material is purchased and goods and services are generated in a sufficient amount. JIT is a part of the inventory and production management. It is very reliable in satisfying the actual demand of the customers and can reduce waste and error at the same time.

(b)

Expert Solution
Check Mark

Explanation of Solution

The maximum authorized router inventory is calculated by the following formula.

  Maximum authorized system= K×C= 17×4= 68

Hence, the maximum authorized inventory is 68.

(c)

Summary Introduction

Interpretation:

The average inventory of routers

Concept Introduction:

In the Just-In-Time (JIT) system, the material is purchased and goods and services are generated in a sufficient amount. JIT is a part of the inventory and production management. It is very reliable in satisfying the actual demand of the customers and can reduce waste and error at the same time.

(c)

Expert Solution
Check Mark

Explanation of Solution

The average inventory of the router is calculated by the following formula.

  Average inventory of routers  = K×C217×42= 34

Hence, the average inventory of routers is 34.

(d)

Summary Introduction

Interpretation:

On fluctuating the waiting time and total processing time then the new answer to part (a)

Concept Introduction:

In the Just-In-Time (JIT) system, the material is purchased and goods and services are generated in a sufficient amount. JIT is a part of the inventory and production management. It is very reliable in satisfying the actual demand of the customers and can reduce waste and error at the same time.

(d)

Expert Solution
Check Mark

Explanation of Solution

A total number of the Kanbans can be calculated by the following formula.

  K=D(p+t)(1+γ)C

Where,

  Daily demand (D)=17units/dayProcessing time+waiting time (p+t)= 2.75Container Size (C) = 4Safety factor (γ) = 5% or 0.05

Now, putting the values in the formula.

  K=D( p+t)( 1+γ)CK=17( 2.75)( 1+0.05)4K=17( 2.75)( 1.05)4= 49.084= 12.27=13

Now, the total number of Kanbas is 13.

  Maximum authorized system= K×C= 13×4= 52

  Average inventory of routers  = K×C213×42= 26

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Students have asked these similar questions
Problem 4: Given the following information, determine the number of Kanban cards required.Demand rate = 800 units per hourLead time = 30 hours container capacity = 1200 unitssafety stock = 15% of the total
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A fabrication cell at Spradley’s Sprockets uses the pull method to supply gears to an assembly line. George Jitson is in charge of the assembly line, which requires 500 gears per day. Containers typically wait 0.20 day in the fabrication cell. Each container holds 20 gears, and one container requires 1.8 days in machine time. Setup times are negligible. If the policy variable for unforeseen contingencies is set at 5 percent, how many containers should Jitson authorize for the gear replenishment system?
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