Matt Dillon Works for a Production Facility That Makes Ball

question 92

Short Answer

Matt Dillon works for a production facility that makes ball point pens. His job is to place the spring on the central ink insert. He is expected to process 200 inserts per hour. The factory uses a Kanban production system with containers that hold 50 inserts. It takes 30 minutes for Frank to receive the inserts from the previous work station. The factory sets safety stock at 40 percent of demand during lead time. How many Kanbans are needed?

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Definitions:

Sales Values

The total revenue generated from goods or services sold, typically reported within a specific time frame or for particular products.

Minimum Amount

The smallest quantity or value allowed or required under a specific condition or regulation.

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific product, department, or segment of the business.

Net Operating Income

The total profit of a business after operating expenses but before deducting taxes and interest.