A Company Is Using a Kanban System with 2 Containers

question 1

Essay

A company is using a Kanban system with 2 containers, each holding 50 parts, between a downstream (using) and an upstream (producing) work center. The using work center can handle 250 jobs per day. The average elapsed time for the entire cycle is currently 0.25 days. The company is concerned about the safety factor for the operation and the size of the containers.
a.What is the efficiency rating of the current operation?
b.If the company decides to use only one container, how many parts must it hold?
c.If the safety factor is changed to 0.12 and there are still 2 containers, how many parts must each container now hold?

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Definitions:

Fair Value

A financial term referring to the estimated market value of an asset, based on current market prices.

Available For Sale

A classification for financial assets indicating that they are neither held for trading purposes nor intended to be held to maturity, implying they can be sold to meet liquidity needs or strategic goals.

Idle Funds

Money that is not currently invested or used in transactions, potentially earning no interest or profit.

Semiannually

Occurring or calculated twice a year.