Question

1) Purple Ice Enterprise is trying to reduce inventory of its storage by using Kanban system between its assembly lines. Determine the size of the Kanban and the number of Kanban (containers) needed based on the following information:

Ordering cost = $10.00Carrying cost = $100.00 per unit

Daily production = 200 units

Business days = 5 per weekBusiness weeks = 50

Safety stock = 50%

Daily demand = 140 unitsLead time = 2 days

a) Size of Kanban

b) Number of Kanban

2) GG8 Enterprise has daily demand of 40 units while the product assembly are about 70 units. Any excess units must be stored in the warehousing with $6.50 per unit. Once order takes place, the enterprise will deliver it with 3 working weeks with $100 for each order. The enterprise opens 50 weeks per annum and always keeping their stocks approximately 20% of the demand.

(a)Find the optimum value of ordering.

(b) The size of Kanban

(c) (a)How many orders per year?

3) KJ9 Enterprise is trying to speed up the assembly system by using Kanban technique. Presently, the assembly system produces 400 units per day. The enterprise has daily demand of 650 units and any excess units must be stored in the warehouse with $1.50 per unit. Once order be made, the delivery takes 3 working weeks with cost of $200. The enterprise opens 50 weeks per annum and always keeping their stocks approximately 2% plus 250 units as standard deviation.

(a)Find the optimum value of ordering.

(b) The amount of safety stock

(c) The size of Kanban