Question
An assembly line produces 800 products per hour, with a standard deviation of demand during lead time of 100. For every product they make they
An assembly line produces 800 products per hour, with a standard deviation of demand during lead time of 100. For every product they make they use a Kanban system. The lead time from the inventory location to the assemble line is 2 hours. The boxes the product is transported in can carry 200 items and the company uses an alfa factor of 0.1.
1.How many Kanban cards are needed?
2.The company wishes to use a ROP system, what will the ROP be?
3.What service level does the safety stock represent? i.e The probability of not having a shortage during one cycle.
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