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A Manufacturer of Automobile Engines Is Designing a New Kanban

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A manufacturer of automobile engines is designing a new Kanban system for engine #321. The demand for #321 is 75 parts per day, and the container can hold 8 parts at a time. The total processing and waiting time is 3 days. The manager wants a safety factor ( α ) of 2 or 200 percent. How many Kanbans are required in this system?


Definitions:

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes by the government, after all deductions and exemptions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (income), showing the percentage of income paid in taxes.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

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