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Leblanc Electronics, Inc, in Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the owner, Larry Leblanc,

Leblanc Electronics, Inc, in Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the owner, Larry Leblanc, to reduce inventory by introducing a Kanban system. After several hours of analysis, you develop the following data for scanner connectors used in one work cell.

How many Kanbans do you need for this connector?

Daily demand 1,000 connectors
Lead time 2 days
Safety stock 1/2 days
Kanban size 500 connectors

Carl Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. She has therefore determined that she will reduce her component lot sizes. She has developed the following data for one component, the safety chain clip:

Annual demand 31,200 units
Daily demand 120 units
Daily production in 8 hrs 960 units
Desired lot size 1 hour of production

120 units

Holding cost per unit per year $12
Setup labor cost per hour $20

How many minutes of setup time should she have her plant manager aim for regarding this component?

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