3. A production cell at Canderberry Candle facility operates 5 hours per day and

Question

3. A production cell at Canderberry Candle facility operates 5 hours per day and uses a pull method to supply wicks to the assembly line. The wicks are used at a rate of 300 per day. Each container holds 20 wicks and usually waits 20 minutes in the production cell. Management wants a safety stock of 10 percent. How many containers should be used at the Canderberry Candle facility for purposes of pull production? 0 7. Robert produces 300 units of a product per hour and 30 units are needed to fill a container. It takes 15 minutes to receive the materials needed from the previous workstation. The company currently uses a safely stock of 10 percent. Determine the number of kanbans needed between Robert's station and the previous process. 8. Consider the information from Problem 7. Determine how the number of kanbans and the inventory level will be affected if the time required for Robert to receive the material increases to 30 minutes Chapter 8

Explanation / Answer

3. Canderberry candle facility

Demand rate, D = 300 wicks per day = 300/5 = 60 wicks per hour

Container size, C = 20 wicks

Lead time, L = 20 minutes = 1/3 hour

Safety stock factor, s = 10%

Number of containers = D*L*(1+s)/C

= 60*(1/3)*(1+10%)/20

= 1.1

~ 2 containers

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