Lou’s Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 130 cups of chocolate chips per week. The average setup and processing time is 1/2 day. Each container holds exactly two cups. The current safety stock factor is 5 percent. The baker operates six days per week.
a. How many Kanbans are required for the bakery?
b. What is the maximum authorized inventory?
c. If the average setup and processing time is reduced to 3/8ths of a day due to better training and retention of experienced employees, what are the answers to (a) and (b)?