Question

The Edward James Toy Company uses a Kanban system to make plastic wheels that are a component of several toys. The waiting time for a container of the wheels during production is 0.25 day; average processing time is 0.15 day per container. Each container holds 200 wheels. The company uses 2,000 wheels a day in the production of its products. Use the information in Case 6.1. Using a policy variable of 5%, calculate the number of Kanban containers needed for the wheels.

Answer 1

Answer:

$N_c \approx 5.0$

Step-by-step explanation:

From the question we are told that:

Waiting time for a container of the wheels during production $T_w=0.25day$

Average processing time is $T_a=0.15 day per container$

Wheel per container $N_w=200$

Total wheel per day $D=2000$

Policy variable of $X=5%$  

Generally the equation for Total number of container $N_c$ is mathematically given by

$N_c=DT(\frac{1+X}{N_w} )$

Where

Total time $T=T_w+T_a$

$T=0.15+0.25$

Therefore

$N_c=DT(\frac{1+X}{N_w} )$

$N_c=2000*0.40(\frac{1+0.5}{200} )$

$N_c=(\frac{840}{200} )$

$N_c=4.2$

$N_c \approx 5.0$

Therefore the number of Kanban containers needed for the wheels is

$N_c \approx 5.0$