An automobile transmission manufacturer is considering using a JIT approach to replenishing its stock of transmissions. Daily

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An automobile transmission manufacturer is considering using a JIT approach to replenishing its stock of transmissions. Daily demand for transmission #230 is 55 transmissions per day and they are built in groups of six transmissions. Total assembly and waiting time is two days. The supervisor wants to use an alpha value (α) of 1, or 100 percent.

a. How many Kanbans are required? 

b. What is the maximum authorized inventory?

c. What are the pros and cons of using such a high alpha value (a)?

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Operations And Supply Chain Management

ISBN: 9780357131695

2nd Edition

Authors: David A. Collier, James R. Evans

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