Uses kanban system to produce tops for tequila bottles

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Reference no: EM131367638

Smith Manufacturing uses a Kanban system to produce tops for tequila bottles. Don Julio Manufacturing operates 10 hours per day, 5 days per week, 48 weeks per year. Because these are very special bottle tops, a container can only hold 50 tops. The average waiting time is 2.2 hours and the average processing time is 1.2 hours. The hourly demand for bottle tops is 80 tops per hour.

a. If Smith wants to control the number of Kanbans to six per day, what safety factor,α, is he using?

Reference no: EM131367638

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