Please answer 16-7 Reference only: \"16-6 Stan Weakly can sort a bin of 100 lett

Question

Please answer 16-7

Reference only: "16-6 Stan Weakly can sort a bin of 100 letters in 10 minutes. He typically receives 600 letters an hour. A truck arrives with more bins every 30 minutes. The office uses a safety factor of 10%. How many kanbans are needed for the letter-sorting process? "

16-7 The office administrator wishes to decrease the number of kanbans in the letter-sorting process described in Problem 16-6. Which of the following alternatives has the greatest effect on reducing the number of kanbans?

a. Eliminating the safety factor.

b. Receiving truck deliveries every 15 minutes

c. Increasing the bin capacity to 300 letters What is the effect on inventory levels of decreasing the number of kanbans?

Russell, Roberta S.; Taylor, Bernard W. (2013-12-09). Operations and Supply Chain Management, 8th Edition (Page 754). Wiley. Kindle Edition.

Explanation / Answer

Number of Kanbans= (dL+S)/C

d=600

L=30min=0.5 hr

S=10%*(600*0.5)=30

C=100

hence kanbans= (600*0.5+30)/100=3.3

16-7

a. Eliminating the safety factor. --this will bring the kanban number to 3

b. Receiving truck deliveries every 15 minutes-=Kanban=(600*0.25+0.1*600*0.25)/100=1.65

c. Increasing the bin capacity to 300 letters =Kanban=330/300=1.1 hence (c) is the best option

With decrease in kanbans, inventory levels will decrease

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