Expresses the amount of implied safety stock in this system

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You are asked to analyze the kanban system of LeWin, a French manufacturer of gaming devices. One of the workstations feeding the assembly line produces part M670N. The daily demand for M670N is 1,725 units. The average processing time per unit is 0.002 day. LeWin's records show that the average container spends 0.900 days waiting at the feeder workstation. The container for M670N can hold 375 units. 16 containers are authorized for the part. Recall that p bar is the average processing time per container, not per individual part.

a. The value of the policy variable, alphaα , that expresses the amount of implied safety stock in this system is _____ (Enter your response rounded to three decimal places.)

b. Use the implied value of alpha from part a to determine the required reduction in waiting time if ___ containers werecontainers were removed. Assume that all other parameters remain constant. The new waiting time is _____ day(s) (enter your response rounded to three decimal places) or a reduction in waiting time of nothing % (enter your response as a percent rounded to two decimal places).

Reference no: EM132290692

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