Lou's Bakery has established that JIT should be used for chocolate chips due to the high probability
Question:
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 150 cups of chocolate chips per week. The average setup and processing time is 1/4 day. Each container holds exactly two cups. The current safety stock factor is 5 percent. The baker operates six days per week.
a. How many Kanbans are required for the bakery?
b. What is the maximum authorized inventory?
c. If the average setup and processing time is increased to 3/8ths of a day due to a process change, what are the answers to (a) and (b)?
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Step by Step Answer:
a Using Equation 171 we have K dp w 1 C 150 cups week 6 daysweek 25 days 1 05 2 328 ...View the full answer
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Tawfiq Abuaita
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ISBN: 978-1305664791
6th edition
Authors: David Alan Collier, James R. Evans
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