Question: A lean system has the following characteristics: Demand rate = 20 parts per hour; safety stock required = 5 percent; number of containers used =

A lean system has the following characteristics:

Demand rate = 20 parts per hour; safety stock required = 5 percent; number of containers used = 14; lead time to replenish an order = 6 hours.

a) Calculate the container size for the 14 containers.

b) Calculate the maximum system inventories.

c) If the required safety stock was changed to zero, what impact would this have on the container size?

Step by Step Solution

★★★★★

3.33 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a C DT1SK 206105... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (2 attachments)

PDF file Icon

1454_6054778c4d3e5_667994.pdf

180 KBs PDF File

Word file Icon

1454_6054778c4d3e5_667994.docx

120 KBs Word File

Students Have Also Explored These Related Operations Management Questions!

Q:

Megan, age 32, is married and has a son, age 1. She recently purchased a cash-value life insurance policy that has the following characteristics: The frequency and amount of premium payments are...

Q:

Buner Corp.s outstanding bond has the following characteristics: Years to maturity 6.0 Coupon rate of interest .. 8.0% Face value .. $1,000 If investors require a rate of return equal to 12 percent...

Q:

Buckeye Novelty Shop uses a continuous-review system and operates 52 weeks per year. One of the best-selling items has the following characteristics: Demand (D) = 14,000 units/year Ordering cost (S)...

Q:

A lean system has the following characteristics: Discount rate = 20 parts per hour; safety stock require = 5%; numbers of containers used = 14; lead time to replenish an order = 6 hours a) Calculate...

Q:

Calculate the inventory container size required given the following: Demand rate = 1 0 parts per hour, Safety stock required = 1 6 % Number of containers = 1 4 , Time to cycle through entire system =...

Q:

Calculate the inventory container size required given the following: Demand rate = 16 parts per hour, Safety stock required = 18% Number of containers = 14, Time to cycle through entire system = 5 hou

Q:

Calculate the inventory container size required given the following: Demand rate = 1 3 parts per hour, Safety stock required = 1 5 % Number of containers = 1 1 , Time to cycle through entire system =...

Q:

Calculate the inventory container size required given the following: Demand rate = 1 3 parts per hour, Safety stock required = 1 5 % Number of containers = 1 8 , Time to cycle through entire system =...

Q:

Question 1 (2 points) Calculate the number of containers needed in a Kanban System given the following: Demand rate = 13 parts per hour, Safety stock required - 18% Container size = 14 parts, Time to...

Q:

Question 3 0 ( 1 point ) Calculate the number of containers needed in a Kanban System given the following: Demand rate = 1 3 parts per hour, Safety stock required = 1 8 % Container size = 1 4 parts,...

Q:

Laboratory test reactors have been operated at different SRT values at steady state to obtain biological kinetic coefficients for a wastewater with soluble constituents only. The reactors are...

Q:

Building an Income statement. Lifetime, Inc. has sales of $585,000, costs of $273, 000, depreciation expense of $71,000, interest expense of $38,000, and a tax rate of 35%. What is the net income for...

Q:

? _ _ _ i s p r o p o r t i o n o f p r o f i t i n t h e r e v e n u e o f c u s t o m e r ? a . g a i n , b . c u s t o m e r p r o f i t a b i l i t y , c . b e n e f i t , d . a d v a n t a g e

Q:

=+What kind of good would x1 have to be in order for this cross-price demand curve to slope down?

Q:

Discuss briefly the benefits and limitations of an MRP system.

Q:

Component X has the following weekly demand requirements: The ordering cost for this item is $50/order and holding cost is $2/unit/week (in U.S. dollars). To develop a material requirements plan for...

Q:

Describe briefly the different lot-sizing approaches used in MRP.

Q:

You just won the lottery! Do you select the lump sum payout or choose to receive amounts over time?

Q:

Based on the data contained in Table A, what is the break-even point in units produced and sold? TABLE A Average selling price per unit $18.00Variable cost per unit $13.00Units sold 400,000Fixed...

Q:

Part B: Calculate the value of these bonds: 1) 10-year bond, with $1000 principal, a coupon rate 9% and discount rate 12% 2) 5-year bond, with $1000 principal, a coupon rate 3.5% and discount rate...