Consider a Workstation That Can Process 4 Units Per Minute

question 20

Short Answer

Consider a workstation that can process 4 units per minute. It takes 10 minutes to receive an order from the previous station. The container size is 10 units. The factory sets safety stock at 20 percent of demand during lead time. How many kanbans are needed for the workstation?

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Definitions:

Freight In

The cost associated with the transportation of goods or materials into a business, typically considered part of the cost of goods sold.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.

Periodic Method

An inventory accounting method where the inventory balance is updated at the end of each period after a physical count.

Purchases Discounts

Reductions in price given by suppliers for prompt payment or purchases in bulk.