Daily Usage of a Part Is 20 in a Facility

question 15

Essay

Daily usage of a part is 20 in a facility that operates 250 days of the year.Setup cost is $20 and annualized carrying cost is $210.Production of this part occurs at the rate of 50 per day when production of the part is underway.Lead time is 1 day;safety stock is 1/2 day's production.What is the optimum kanban size,and number of kanbans?

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Definitions:

Standard Normal Distribution

A specific probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Z-score

A metric that depicts how far a certain value stands from the mean of a collection of values, using the unit of standard deviations for measurement.

First Quartile

The value below which 25% of the data falls, marking the lower quarter of a data set.

Quartile

A type of quantile that divides a rank-ordered dataset into four equal parts.