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Unformatted text preview: 1 ANSWERS Problem 1: Demand during lead time 1,500 = Safety stock 1,500 = Therefore: Maximum inventory level 1,500 1,500 3,000 = + = Number of kanbans needed maximum inventory level/kanban size 3000 / 250 12 = = = Problem 2: Daily demand 300 units Holding cost $20/unit/year Order cost $10/order Lead time 2 days Safety stock 2 days demand Find the size of the kanban and the number of kanbans required. Assume that the size of the kanban is the EOQ: 2*Demand*Order cost 2*300*300*10 Q 90,000 300 units Holding cost 20 = = = = kanban size 300 = 2 Number of kanbans (demand during lead time safety stock) / size of kanban = + [(2*300) 600]/ 300 1200 / 300 4 kanbans = + = = 3...
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This note was uploaded on 08/29/2009 for the course BSOP BUSN taught by Professor Unknown during the Spring '09 term at DeVry Addison.
 Spring '09
 Unknown

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