The production schedule at ABC Car Company calls for 1,200 'D' models to be produced during each
Question:
The production schedule at ABC Car Company calls for 1,200 'D' models to be produced during each of 22 production days in January, and 900 to be produced during each of 20 production days in February. ABC uses a kanban system to communicate with EFG, a nearby supplier of tires. ABC purchases four tires per vehicle from EFG. The safety stock policy variable,?, is 0.15. The container (a delivery truck) size is 200 tires. The average waiting time plus materials handling time is 0.16 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing time per container in January is 0.10 day. February processing time will average 0.125 day per container. How many containers should be authorized for January? How many for February?
Step by Step Answer:
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra