A supplier of Toyota is planning to implement Heijunka. Toyota has recommended that the supplier cut the batch sizes from the current level of 50 down to 10. In order to achieve this, the supplier should reduce setup costs by a factor of
• 5
• 25
• √5
• Reducing setup costs has no relationship with batch size

Question

Quizplus · Accepted Answer

The Answer is To reduce EOQ by a factor of 5, we need to reduce set up cost by a factor of 25

A Supplier of Toyota Is Planning to Implement Heijunka