Canadian manufacturer of party products

Assignment Help Operation Management

Reference no: EM131181102

Kanban Blue Wave Enterprises is a Canadian manufacturer of party products. A new line of birthday candles is selling successfully but not profitable. The production process is fairly but takes 4 days and candles have to retail at a very low price to be competitive. The owner of the company feels that the greatest cost is in keeping 50,000 packages of candles in inventory. She wants to implement a Kanban system to reduce storage costs. The operations manager provides the owner with the following information:

Daily demand 3,000 packages of candles

Lead time 4 days

Safety stock 1 day

Container size 250 packages how many Kanbans will be required and what does this mean?

Reference no: EM131181102

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