An assembly line produces 800 products per hour, with a standard deviation of demand during lead time
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Question:
An assembly line produces 800 products per hour, with a standard deviation of demand during lead time of 100. For every product they make they use a Kanban system. The lead time from the inventory location to the assemble line is 2 hours. The boxes the product is transported in can carry 200 items and the company uses an alfa factor of 0.1.?
1. What's the number of Kanban cards they need?
2. If they instead want to use a ROP system, what will the ROP be?
3. What service level does the safety stock represent ? (The probability of not having a shortage during one inventory cycle.)
Related Book For
Essentials of Statistics for the Behavioral Sciences
ISBN: 978-1285056340
8th Edition
Authors: Frederick J Gravetter, Larry B. Wallnau
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