Webster Manufacturing Inc. is implementing a Just-in-Time (JIT) system and wants to know how many Kanbans to use for the initial setup of its JIT system. The daily demand is 400 units and each Kanban (i.e., container) holds 15 units. The combined processing and waiting time per container is 0.7 days. If the initial alpha value for safety stock is 0.6, how many Kanban containers should be authorized?
A) More than 10 but less than or equal to 15 Kanbans
B) More than 15 but less than or equal to 20 Kanbans
C) More than 20 but less than or equal to 25 Kanbans
D) More than 25 Kanbans
Correct Answer:
Verified
Q24: If the safety stock factor is changed
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Q30: ABC Manufacturing Inc. uses a Kanban system
Q31: Webster Manufacturing Inc. is implementing a Just-in-Time
Q32: If the number of containers is reduced
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