A Company Is Using Kanban Containers $\alpha$ ) of 20%The Company Is Interested in Reducing the Number of Containers

question 29

Essay

A company is using Kanban containers.There are two adjacent work centers, a downstream (using) and an upstream (producing) one.The using work center has a production rate of 200 parts per day and each container holds 20 parts.It takes .5 days for a container to make the entire cycle from the time it leaves the upstream center until it is returned, filled with production, and leaves again.The manager wants a safety factor ( $\alpha$ ) of 20%.The company is interested in reducing the number of containers.
a.What is the number of containers currently in use?
b.If the number of parts a container holds is increased to 24 parts, how many containers are needed?
c.If the company wants the number of containers (holding 20 parts each) to be 5, what must the safety factor become?

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Definitions:

Imported Tables

Digital or physical tables of data that are brought into a document or database from an external source.

Markup Percent

The rate at which the cost price of goods is marked up to determine their selling price.

Selling Price

The amount for which something is sold, determined by factors such as cost, demand, and competition.

Cost

The amount of money required to produce, purchase, or maintain a product or service.