Chapter 8.6, Problem 37P

(a)

Summary Introduction

Interpretation:The total number of kanban tickets is to be calculated.

Concept Introduction:

The following formulas will be used −

  $y=\frac{\overline{D}L+w}{a}$

  $ay=\overline{D}L+w$

  $h=lc$

(b)

Summary Introduction

Interpretation: The maximum WIP inventory that company can expect is to be calculated.

Concept Introduction:

The following formulas will be used −

  $y=\frac{\overline{D}L+w}{a}$

  $ay=\overline{D}L+w$

  $h=lc$

(c)

Summary Introduction

Interpretation: The annual carrying cost of WIP inventory that company is incurring is to be calculated.

Concept Introduction:

The following formulas will be used −

  $y=\frac{\overline{D}L+w}{a}$

  $ay=\overline{D}L+w$

  $h=lc$