Name: Show your work for each question or no credit. Use the following informati
ID: 393132 • Letter: N
Question
Name: Show your work for each question or no credit. Use the following information to answer questions 1 3. Suppose a "lean" work center is being operated with a container size of 25 units and a demand rate of 100 units per hour. Also assume it takes 2 hours lead time for the work center to fulfill a downstream container request. Also assume the firm operates 20 days in the coming upstream month. 1. Assuming a safety stock factor of s percent, how many containers are required? 2. In theory, wtat is the masimum inventory (aumber of units) that could accumulate at the work center? 3. In theory, what is the minimum inventory (number of units) that could accumulate at the work center? 4. Suppose a "lean" work center is being operated with a container size of 25 units and a demand rate of 100 units per hour. Also assume it takes 180 minutes lead time for the upstream work center to fulfill a downstream container request. Assuming a safety stock factor of 10 percent, how many containers are required?Explanation / Answer
n * k = l * d * (1 + r)
k = number of Kanbans (containers) in process.
n = Kanban container size = 25 units
l = average lead time for replenishment = 2 hrs.
d = demand rate = 100 per hr.
r = safety factor for demand during lead time = 5% or 0.05
(1)
Number of kanbans or containers (k) = l * d * (1 + r) / n = 2 * 100 * (1+0.05) / 25 = 8.4 or 9 (rounded off)
(2)
In case of kanban system, the production will stop when all the containers are full. So, the theoritical maximum inventory level = n * k = 25*9 = 225 units
(3)
The minimum inventory, theoritically, should be the lead time demand without the protection level of 5% i.e. l * d = 200 units.
(4)
n = 25 units
l = 180 minutes = 3 hrs.
d = 100 per hr.
r = 10% or 0.1
Number of kanbans or containers (k) = l * d * (1 + r) / n = 3 * 100 * (1+0.1) / 25 = 13.2 or 14 (rounded off)
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