What is the maximum authorized inventory

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Reference no: EM132159536

Lou’s Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 180 cups of chocolate chips per week. The average setup and processing time is ½ day. Each container holds exactly 2 cups. The current safety stock factor is 5 percent. The baker operates 6 days per week. How many Kanbans are required for the bakery? What is the maximum authorized inventory? If the average setup and processing time is reduced to 3/8ths of a day due to better training and retention of experienced employees, what are the answers to (1) and (2)?

Reference no: EM132159536

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