Calculate the maximum inventory

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Reference no: EM132195117

1. Berlin Industries uses a kanban system to manage production of the R-15 subassembly. They have an hourly demand for 250 units and use containers that can hold 50 parts each. It takes 90 minutes to fill and move a container of parts to the right place on the R-15 line that is currently rated at a 20% safety factor.

Calculate the maximum system inventory for this part.

450 units

400 units

2,500 units

5,000 units

75 units

2. Copenhagen Industries uses a kanban system to manage production of their subassembly. In a 10-hour day, they use 1,500 units and use containers that can hold 50 units each. It takes 45 minutes to fill and move a container of parts to the right place on the subassembly line that is currently rated at a 15% safety factor.

If the required safety stock was changed to zero and 3 containers were being used in the system, calculate the maximum inventory.

4,100 units

400 units

150 units

5,000 units

1,300 units

3. An integrated electronic-chip manufacturer has a demand for a specific component of 800 parts per 8-hour day. The manufacturer wants to design a lean system using containers. The containers the manufacturer used for this component held 20 parts. It takes about 4 hours to round-trip a container from one work center to the next and back again. The manufacturer also wants to hold 10% of safety stock of this part in its system.

If the required safety stock was changed to zero, how many containers should the lean system be using, all else being constant?

Reference no: EM132195117

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