Hinge Manufacturing Company employs a Kanban system for a component part. The da

Question

    Hinge Manufacturing Company employs a Kanban system for a component part. The daily demand is 900 hinges. Each container has a wait time of 0.05/day, and a processing time of 0.37 days. The Container size is 60 hinges and the safety factor (a) is 10%.

a.

How many Kanban card sets should be authorized?

b.

What is the maximum inventory of this hinge in the system?

a.

How many Kanban card sets should be authorized?

b.

What is the maximum inventory of this hinge in the system?

Explanation / Answer

D= Demand per unit of time = 900

T= Lead time = (0.37+0.05) = 0.42

C= Container capacity = 60

x = Safety factor = 0.1

a. Number of Kanbans = D*T*(1+x)/C ,

= 900*0.42 *1.1/60

= 6.93

= 7

b. Max. inventory= C*Y = 60 * 7 = 420

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