You Have Read That in JIT and Lean Production the Optimum

question 85

Essay

You have read that in JIT and lean production the optimum lot size is one, with some exceptions for packaging and physical limitations. If a product currently has a lot size of 25, what must happen to setup time for the lot size to truly fall to one?
Data for this problem are D=100 units, S=$75 based on setup time of 50 minutes at $1.50 per minute, and H=$40 per unit per year.

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Definitions:

Global Business

Commercial activities that occur across national borders, involving the production, distribution, and marketing of goods and services.

Global Market

The international trading environment where goods, services, currencies, and investments are exchanged across borders.

Product Strategies

Plans and decisions related to the development, branding, marketing, and selling of products to meet organizational objectives and satisfy market needs.

Market Entry

The strategy or methodology used by a company to begin selling its products or services in a new market or geographical area.