Suppose you have the following information Demand rate (file attached)

Suppose you have the following information:

Demand rate (D) = 750 units per hour

Lead time (T) = 40 hours

Container capacity (C ) = 1000 units

Safety factor (X) = 10%

The number of kanban cards required is:

1. 59
2. 28
3. 30
4. 33

2.         Consider the following information:

Demand rate (D) = 200 units per hour

Lead time (T) = 12 hours

Container capacity (C ) = 144 units

Safety factor (X) = 15%

a.         (*) How many kanban production cards are needed?

b.         (**) How many hours worth of demand will these cards represent?

(**) Suppose the container size is cut in half.  Will this make any difference in the inventory levels?  Show your work.

Consider the following information:

Demand rate (D) = 300 units per hour

Lead time (T) = 4 hours

Container capacity (C ) = 40 units

Safety factor (X) = 10%

a.         (*) How many kanban production cards are needed?

(**) How many hours worth of demand will these cards represent?

(**) Suppose the lead time is reduced to three hours.  Will this make any difference in the inventory levels?  Show your work.

Consider the following information:

Demand rate (D) = 1000 units per hour

Lead time (T) = 2 hours

Container capacity (C ) = 250 units

Safety factor (X) = 15%

a.         (*) How many kanban production cards are needed?

(**) How many hours worth of demand will these cards represent?

10 cards * 250 units per card = 2500 / 1000 units per hour

2.5 hours worth of material

c.         (**) Suppose the safety factor is eliminated.  Will this make any difference in the inventory levels?  Would this be a wise thing to do?  Show your work.

Consider the following information:

Demand rate (D) = 60 units per hour

Lead time (T) = 40 hours

Container capacity (C ) = 20 units

Safety factor (X) = 10%

a.         (*) How many kanban production cards are needed?

(**) How many hours worth of demand will these cards represent?

(**) Suppose the demand rate is doubled, but the lead time is cut in half.  Will this make any difference in the inventory levels? Show your work.