# Question

Due to rapid changes in technology, a telecommunications manufacturer decides to produce a router using just-in-time methods. Daily demand for the router is 10 units per day. The routers are built on racks that hold four at a time (i.e., the container size). Total processing and waiting time is 3.75 days. The process manager wants a safety factor of only 5 percent.

a. How many Kanbans are required?

b. What is the maximum authorized router inventory?

c. If you assume that one-half of the racks are empty and one-half full at any given time, what is the average inventory of routers?

d. What are the answers to a to c if due to process improvements the total processing and waiting time is reduce from 3.75 to 2.75 days?

a. How many Kanbans are required?

b. What is the maximum authorized router inventory?

c. If you assume that one-half of the racks are empty and one-half full at any given time, what is the average inventory of routers?

d. What are the answers to a to c if due to process improvements the total processing and waiting time is reduce from 3.75 to 2.75 days?

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