Suppose you have the following information Demand rate (file attached) - 75001

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Suppose you have the following information:

 

Demand rate (D) = 750 units per hour

Lead time (T) = 40 hours

Container capacity (C ) = 1000 units

Safety factor (X) = 10%

The number of kanban cards required is:

  1. 59
  2. 28
  3. 30
  4. 33

2.         Consider the following information:

Demand rate (D) = 200 units per hour

Lead time (T) = 12 hours

Container capacity (C ) = 144 units

Safety factor (X) = 15%

 

a.         (*) How many kanban production cards are needed?

 

b.         (**) How many hours worth of demand will these cards represent?

(**) Suppose the container size is cut in half.  Will this make any difference in the inventory levels?  Show your work.

Consider the following information:

Demand rate (D) = 300 units per hour

Lead time (T) = 4 hours

Container capacity (C ) = 40 units

Safety factor (X) = 10%

 

a.         (*) How many kanban production cards are needed?

(**) How many hours worth of demand will these cards represent?

(**) Suppose the lead time is reduced to three hours.  Will this make any difference in the inventory levels?  Show your work.

Consider the following information:

Demand rate (D) = 1000 units per hour

Lead time (T) = 2 hours

Container capacity (C ) = 250 units

Safety factor (X) = 15%

a.         (*) How many kanban production cards are needed?

(**) How many hours worth of demand will these cards represent?

10 cards * 250 units per card = 2500 / 1000 units per hour

2.5 hours worth of material

c.         (**) Suppose the safety factor is eliminated.  Will this make any difference in the inventory levels?  Would this be a wise thing to do?  Show your work.

Consider the following information:

Demand rate (D) = 60 units per hour

Lead time (T) = 40 hours

Container capacity (C ) = 20 units

Safety factor (X) = 10%

 

a.         (*) How many kanban production cards are needed?

(**) How many hours worth of demand will these cards represent?

(**) Suppose the demand rate is doubled, but the lead time is cut in half.  Will this make any difference in the inventory levels? Show your work.

 

Solution Description

 

Suppose you have the following information:

 

Demand rate (D) = 750 units per hour

Lead time (T) = 40 hours

Container capacity (C ) = 1000 units

Safety factor (X) = 10%

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Suppose you hav...