Find out the value of the policy variable

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Reference no: EM1375825

Q. 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 1,800 units. The average processing time per unit is .003 day. LeWin's records shoe which the average container spends 1.05 days waiting at the feeder workstation. The container for M670N can hold 300 units. Twelve containers are authorized for the part. Recall which p-bar is the average processing time per container not per individual part.
Find out the value of the policy variable, α, which expresses the amount of implied safety stock in the system.



Reference no: EM1375825

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