Raw material inventory for required number of containers

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Reference no: EM131428703

Great Sky compnay uses Kanban cards and containers to manage incoming materials at a production cell. On average, the cell uses 400 units of raw materials per hour. Each raw material conatiner has a capacity of 50 units and an average cycle time ( waiting plus production lead time) of 40 minutes. The production/opeations manager believes the cell has an inneficiency factor (policy variable) of 0.35. The company also wants the system to have a looser operation.

Hint: Make sure the demand ( usage rate) and cycle time are based on the same time measurement/scale (e.g days, hours, minutes)

Please show your work

1) What is the required number of containers? (Round up the number of containers to loosen the system).

2) What is the total raw material inventory for the required number of containers?

Reference no: EM131428703

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