Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
12th Edition
ISBN: 9780134742205
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 9P
Summary Introduction
Interpretation: The number of containers that should be authorized for the months of January and February is to be calculated.
Concept Introduction: Kanban system is a concept which is implemented under the Lean concepts and just in time management system.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The production schedule at Mazda calls for 1,250 Mazdas to be produced during each of 22 production days in January and 1,050 Mazdas to be produced
during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases
four tires per vehicle from the Gesundheit. The safety stock policy variable, a, is 0.08. The container (a delivery truck) size is 250 tires. The average waiting
time plus material handling time is 0.50 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing per
container in January is 0.50 day. February processing time will average 0.10 day per container.
How many containers should be authorized for January?
containers. (Enter your response rounded up to the next whole number.)
A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUS Following are the characteristics of one tem
Demand (D)=85 units/week (Assume 52 weeks per year)
Ordening and setup cost (S) $75/order
Holding cost (H)-$16/und/year
Lead time (L) 5 week(s)
Standard deviation of weekly demand 22 units
Cycle-service lovel-90 percent
>EOQ-207 units
Using the above information, develop the best policies for a periodic review system Refer to the standard normal table for z-values
a. What value of P gives the same approximate number of orders per year as the EOQ? weeks (Enter your response rounded to the nearest whole number)
b. To provide a 98 percent cycle-service level, the average safety stock is
To provide a 98 percent cycle-service level, the target inventory level is
unts (Enter your response rounded to the nearest whole number)
units (Enter your response rounded to the nearest whole number)
Based on available information, lead time demand for PC jump drives
averages 48 units (normally distributed), with a standard deviation of 5
drives. Management wants a 98% service level. Refer to the
standard normal table for z-values.
a) What value of Z should be applied? 2.06
b) How many drives should be carried as safety stock?
your response to the nearest whole number).
units (round
Chapter 6 Solutions
Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
Knowledge Booster
Similar questions
- What happens to availability when MTTR (mean time between failures) gets close to zero? Is it possible to explain this circumstance accurately?arrow_forwardAccording to MM Model, total value of firm is Decreases with the decreases in WACC Constant None of the above Increases with the decresase in WACC Increases with the increase in WACCarrow_forwardA company replaces its SKU’s at a rate of 25 pcs a day. In the past this qty tended to vary normally & have a std dev of 3 units per day. SKU’s are ordered from XYZ Supplier. LT is normally distributed with an average of 10 days & std dev of 2 days. What ROP should be used to achieve a service level of 95%.arrow_forward
- 2-39 Susan Williams has been the production manager of Medical Suppliers, Inc., for the past 17 years. Medical Suppliers, Inc., is a producer of bandages and arm slings. During the past 5 years, the demand for No-Stick bandages has been fairly constant. On average, sales have been about 87,000 packages of No-Stick. Susan has reason to believe that the distribution of No-Stick follows a normal curve, with a standard deviation of 4,000 packages. What is the probability that sales will be less than 81,000 packages?arrow_forwardAccording to MM Model, total value of firm is Constant None of the above Increases with the increase in WACC Increases with the decrease in WACC Decreases with the decreases in WACCarrow_forwardPPQ: Silvercrest Manufacturing Ltd. is using Kanban containers. There are two adjacent work centres, a downstream (using) and an upstream (producing) one. The using work centre has a production rate of 200 parts per day and each container holds 21 parts. It takes 0.5 days for a container to make the entire cycle from the time it leaves the upstream centre until it is returned, filled with production, and leaves again. The manager wants a risk factor of 20%.i. What is the maximum inventory of parts in the system? (10 marks)ii. If the company wants the number of containers (holding 21 parts each) to be 5, what must the risk factor become?arrow_forward
- Carol Cagle bas a repetitive manufacturing plantproducing trailer bitches in Arlington, Texas. The plant has anaverage inventory tu rnover of only 12 times per year. She hastherefore determined that she will reduce her component lotsizes. She has developed the following data for one component,the safety chain clip:Annual demand = 31,200 unitsDaily demand = 120 unitsDaily production (in 8 hours) = 960 unitsDesired lot size (I hour of production) = 120 unitsHolding cost per unit per year = $12Setup labor cost per hour = $20How many minutes of setup time should she have her plant manageraim for regarding this component?arrow_forwardIs proper cost of storage is necessary? 1-True 2-Falsearrow_forwardWhat happens to availability when the MTTR (mean time between failures) decreases to zero? Is there a way to convey this circumstance correctly?arrow_forward
- UA Hamburger Hamlet (UAHH) places a daily order for its high-volume items (hamburger patties, buns, milk, and so on). UAHH counts its current inventory on-hand once per day and phones in its order for delivery 24 hours later. Average daily demand 600 Standard deviation of demand 100 Desired service probability 99% Hamburger inventory 800 Determine the number of hamburgers UAHH should order for the above conditions. Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 3 decimal places and final answer to the nearest whole number.arrow_forwardCarol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $25 per hour Annual holding cost $12 per unit Daily production 960 units/8 hour day Annual demand 45,360 (270 days each×daily demand of 168 units) Desired lot size 120 units (one hour of production) Part 2 To obtain the desired lot size, the set-up time that should be achieved = enter your response here minutes (round your response to two decimal places).arrow_forwardA Southern Georgia school district is considering ordering53 propane-fueled school buses. "They're healthier, they'recleaner burning, and they're much quieter than the diesel option,"said a school administrator. Propane-powered buses also reducegreenhouse gases by 22% compared to gasoline-powered buses and6% compared to diesel ones. But they come at a premium- $) 03,000for a propane model, $15,000 more than the diesel equivalent.The propane bus operating cost (above and beyond fuel cost)is 30 cents/mile, compared to 40 cents for the diesel. Diesel fuelcosts about $2/gallon in Georgia, about $1 more than propane.Bus mileage is 12 mpg for the propane model vs. 10 mpg for diesel.The life of a school bus in the district averages 9 years, andeach bus travels an average of 30,000 miles per year because thedistrict is so large and rural.Which bus is the better choice based on a life cycle analysis?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.