Megatech Inc. is a fictional producer of airwave scanners for the defense industry. The company is planning

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Megatech Inc. is a fictional producer of airwave scanners for the defense industry. The company is planning to implement a Kanban control system to eliminate waste in the form of unnecessary inventory. After several days of analysis, Jean Costa, the firm’s production manager, developed the following data for the manufacturing cell that produces the connectors for the scanners:

Expected daily demand = 1,500 connectors
Lead time = 3 days
Safety stock = 20% of daily demand
Size of a Kanban container = 450

How many Kanban containers of connectors are needed for this cell?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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