Question
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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