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A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 110 parts per hour while running. The manager has assigned an inefficiency factor of .20 to the center. Standard containers are designed to hold 4 dozen parts each. The cycle time for parts containers is about 110 minutes. How many containers are needed?

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abiolataiwo2015

Answer:

5.0 containers

Explanation:

Calculation to determine how many containers are needed

Using this formula

N =DT*(1 + X) /C

Where,

D=Annual demand

T=Time

X= Inefficiency factor

C=Holding pieces

Let plug in the formula

N=110*(110 minutes ÷ 60 minutes)*(1+.20)/(4 dozen × 12)

N=110* 1.83* (1.20)/48

N=241.56/48

N=5.0 containers

Therefore 5.0 containers is needed

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