Question
A telecommunications manufacturer is considering using a JIT approach to replenish its stock of DL-01 routers. Daily demand for DL-01 routers is given by 35
A telecommunications manufacturer is considering using a JIT approach to replenish its stock of DL-01 routers. Daily demand for DL-01 routers is given by 35 + 2*X units per day, where X is the last digit of your Student PI number. Example: If your Student PI number is W1234567, then X = 7 and the demand for routers is 49.
The routers are built on racks that hold four at a time, i.e., the container size. The processing time is 2.5 days. The waiting time is 2.25 days. The supervisor wants to use a safety factor of 1.0.
(i) What is the Kanban number? If you assume that half of the racks are empty and half are full at any given time, what is the average inventory of routers? (ii) Outline the pros and cons of using such a high safety factor.
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