Question

A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. The process will have a usage rate of 70 pieces per hour. Because the process is new, the manager has assigned an inefficiency factor of .15. Each container holds 40 pieces and it takes an average of 45 minutes to complete a cycle.
a-1. How many containers should be used? (Round up your answer to the next whole number.) Number of containers __________a-2. As the system improves, will more or fewer containers be required?*Fewer*More

Answer 1

Answer:

a. 1.51 containers

b. Fewer

Explanation:

The computations are shown below:

a. The number of containers would be

= Annual demand × time × (1 + inefficiency factor) ÷ holding pieces

= 70 × 0.75 × (1 + 0.15) ÷ 40

= 1.51 containers

The time is converted from minutes to hour i.e 45 minutes ÷ 60 minutes = 0.75

b. If the system improves, the fewer containers are required i.e 2 containers approximate because inefficiency factor got decreased