Question

Jones Electric Motors uses a Kanban system to make motors for several garage door companies in the southeastern United States. The daily demand for motor housings used in manufacturing is 100 units. The average waiting time for a container of parts is 0.2 day. The processing time for a container of housings is 0.1 day, and a container holds 5 housings. If Jones wishes to use a 10% policy variable, how many containers are needed

Answer 1

Answer:

7 kanban containers are required

Explanation:

Given the following information :

Average Waiting time for containers = 0.2 days

Average processing time = 0.1 days / container

Daily usage (Demand rate) = 100 per day

Container capacity = 5 housings

Policy variable ( Alpha) = 10% = 0.1%

The required number of Kanban containers required by Jones Electric Motor can be calculated thus :

[Number of containers(x) * container size] = (Demand rate (waiting time + processing time)*(1 + alpha))

x * 5 = (100 * (0.2 + 0.1)*(1 + 0.1))

5x = [100 * (0.3)*(1.1)]

5x = [100 * 0.33]

5x = 33

x = 33 / 5

x = 6.6 containers

x = 7