Case 8.3
Mike's Mustard Company uses a Kanban system to manufacture bulk mustard in gallon containers for restaurants.The demand for container lids over an eight-hour production day is 1000 units.The average waiting time for a container of lids is 45 minutes.The processing time for a container of lids is 2 hours,and a container holds 70 lids.
-Use the information in Case 8.3.How many Kanban containers would be required if a 15% policy variable is used?
A)6 or fewer
B)7 or 8
C)15 to 20
D)20 or more

Question

Quizplus · Accepted Answer

The correct answer is A.The number of Kanban containers required is calculated as follows:Demand per day = 1000 unitsAverage waiting time = 45 minutes = 0.75 hoursProcessing time = 2 hoursContainer size = 70 unitsPolicy variable = 15%Number of Kanban containers = (Demand per day * Average waiting time + Processing time) / (Container size * Policy variable)= (1000 * 0.75 + 2) / (70 * 0.15)= 6.67Therefore, 6 or fewer Kanban containers would be required.

Case 8.3 Mike's Mustard Company Uses a Kanban System to Manufacture Bulk