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Chapter 3: Q. 14-14OQ (page 369)

Meritor is so pleased with the outcome from previous suggestions that the consultants are invited back for more work. The consultants now suggest a more complete robotic automation of the making of muffler assemblies and also a reduction in container size to eight per container. Meritor implements these suggestions and the result is that the muffler assembly fabrication cell now averages approximately 32 assemblies per hour, and the catalytic converter assembly cell can now respond to an order for a batch of catalytic converters in one hour. The safety stock remains at 12.5 percent. How many kanban cards are needed?

Short Answer

Expert verified

In this situation, 5 Karban cards are required.

Step by step solution

01

Equation to calculate Karban cards

K = DL(1+S)/C

Where K =number of Kanban size

D =average demand

L =lead time

S =safety stock

C = container size

02

Calculate the Number of Kanban cards

D =32

L =1

S =0.125 (as a percent of 12.5)

C =8

K = 32 x 1(1+0.125)/8

K = 36/8

K = 4.5

(round up the answer to the next whole number)

So,5 Karban cards will be required.

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Most popular questions from this chapter

Question: Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 each. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected:

Requirements (annual forecast)

12,000 units

Weigh per engine

22 pounds

Order processing cost

\(125 per order

Inventory carry cost

20 percent of the average value of inventory per year


Order quantity

Supplier 1 Unit Price

Supplier 2 Unit Price

1 to 1499 units/ order

\)510.00

\(505.00

1500 to 2999 units/order

500.00

\)505.00

3000 + units/order

490.00

488.00

Tooling costs

\(22.000

\)20.000

Distances

125 miles

100 miles

Note: Assume that half of the lot size is in inventory on average (1,000/2 =500 units).

Two qualified suppliers have submitted the following quotations:

Order quantity

Supplier 1 Unit Price

Supplier 2 Unit Price

1 to 1499 units/ order

\(510.00

\)505.00

1500 to 2999 units/order

500.00

\(505.00

3000 + units/order

490.00

488.00

Tooling costs

\)22.000

\(20.000

Distances

125 miles

100 miles

Your assistant has obtained the following freight rates from your carrier:

Truckload (40,00 lbs. Each load):

\)0.80 per ton-mile

Less-than-truckload

$1.20 per ton-mile

Note: Per ton-mile 5 2,000 lbs. per mile.

a. Perform a total cost of ownership analysis and select a supplier.

b. Would it make economic sense to order in truckload quantities? Would your supplier selection change if you ordered truckload quantities?

The chapter presents multiple techniques that service firms can use to make their processes leaner. Which technique is demonstrated by a restaurant that offers special discounts midweek to attract more demand during a traditionally slow period?

Can a supply chain become too lean? Explain your answer鈥攗sing examples if possible.

DM Office Products (DMOP) is a wholesale supplier of Office products with one facility in Pennsylvania. It has decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. It has four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition and DMOP is not a major player there. When DMOP ships an order to a customer it uses its small fleet of two trucks to deliver, so the cost of delivery is essentially the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table

Use the centroid method to recommend a location for the new warehouse for DMOP. Round your coordinates to one decimal place

What are the roles of suppliers and customers in a lean system?
See all solutions

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