Raissa's Teapot Firm Is Moving to a JIT System

question 49

Short Answer

Raissa's teapot firm is moving to a JIT system. One question they are trying to answer is what level of safety stock they should maintain. They produce 240 teapots every four hours. The teapot ceramic handle vendor will deliver a container containing 30 parts one hour after they receive a request to ship. Raissa's kanban system uses four containers. What should they maintain as a safety stock?

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Definitions:

Shopping Center

A complex or area that houses multiple retail stores, restaurants, and other service outlets.

Stand-Alone Location

A business that is located in its own separate premises, rather than within a shared space or complex.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Anchor Stores

Large retail stores, usually department stores or supermarket chains, that serve as the primary draw to a shopping mall or shopping center.