Lous Bakery has established that JIT should be used for chocolate chips due to t

Question

Lous Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 130 cups of chocolate chips per week. The average setup and processing time is day. Each container holds exactly 2 cups. The current safety stock factor is 5 percent. The baker operates 6 days a week. a) How many Kanbans are required for the bakery? b) What is the maximum authorized router inventory? c) If the average setup and processing time is reduced to 3/8 of a day due to better training and retention of experienced employees. What are the answers to (a) and (b).

Explanation / Answer

A kanban is a chain process in which orders flow from one process to another, production of components are pulled through the line In JIT (Just in Time) systems components are needed for final assembly;they are pulled in small batches from the supplying workstation.

A.Below formula is used to calculate total Kanbans:

K=d(p+w)(1+S)/C

K=Number of Kanbans or Container

d=Average demand over some period of time = 130 Cups/week thus daily demand would be = 130/6=22

p+w=Processing and Weighting time to replenish an order (in decimal fractions of a day) = 1/2 Day=0.5

S= Safety Stock =5% = 0.05

C=Container Size = 2 Cups

Thus we have :

=22(0.5)(1+0.05)/2

K=11.55 or 12

B. Maximum authorized router inventory = K* C = 12*2=24

C. If processing time is reduced to 3/8 day it means = 0.375

Then we have K= 22(0.375)(1+0.05)/2

= 8.66 or 9

Now Maximum authorized router inventory = K* C = 9*2 =18

Thus 18 containers are necessary to fulfill daily demand.

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.