Determine the possible inefficiency factor in the system

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Reference no: EM134014110

Question

A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. Usage at the work center is 500 parts per day, and a standard container holds 50 parts. It takes an average of 0.24 day for a container to complete a circuit from the time a kanban card is received until the container is returned empty.

1. Compute the number of kanban cards (containers) needed ifX = 0.40.

2. Compute the maximum authorized inventory.

3. Determine the possible inefficiency factor in the system if the average time has reduced to 0.12 day. Assume that all other parameters remain constant.

Reference no: EM134014110

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