Which costs are relevant to determine optimal batch size

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Reference no: EM132164215

Company X wants to introduce a new product. The new product will be produced on an existing production line consisting of 3 machines in a flow shop configuration. The current control system is a pure JIT system using kanban cards.

Setup times per batch are 20, 10, and 25 minutes on machines 1, 2, and 3 respectively. The transport times between machines are 10 minutes. The production times on the machines are 4, 7, and 6 minutes per part on machines 1, 2, and 3 respectively. The demand for the new product is expected to be 60 parts per day. However, the client does not want all parts to be delivered in one delivery. You are allowed to choose the number of deliveries (between 2 and 6 deliveries per day). The deliveries have to be evenly spread over the work day 8 hours.

Which costs are relevant to determine an optimal batch size?

How many cards are required to control everything and how do you use these cards?

What is the lead time of the product? Which parameters control the lead time and how can you reduce these?

Reference no: EM132164215

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