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Book : Lean Production for competitive advantage Author : Nicholas John M The daily demand of...

Book : Lean Production for competitive advantage

Author : Nicholas John M

The daily demand of an item is 1600 units. The average processing time is 30 seconds per unit. Containers (carrying 240 items) on the average wait for 5 hours before being processed.

Currently 8 containers (kanbans) are being used for this parts. Assume a production schedule of one 8-hour shift per day.

What % safety margin of stock is being carried?

If the demand increases to 1900 items, with 8 kanbans, what would happen to the % safety margin of stock?

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Answer #1

By doing all the calculation we can tell that by increasing the demand then the % safety margin of the stock will decrease.

I have attched the solution ok with detailed formula ok.

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