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 Mike's Mustard require if a 5% policy variable is used?
A)fewer than 2
B)5 or 6
C)50 to 650
D)700 or more

Question

Quizplus · Accepted Answer

The number of Kanban containers is calculated using the formula: (Demand rate * (Waiting time + Processing time) * (1 + Policy variable)) / Container size. Plugging in the values: (1000/8 * (45/60 + 2) * 1.05) / 70 = 5.25, which rounds to 5 or 6 containers.

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