Formula review for kanbans


Question 1: Carlos Gonzales is production manager at an assembly plant that manufactures cordless telephones. The company is planning to install a pull system. The process is being planned to have a usage rate of fifty pieces per hour. Each container is designed to hold ten pieces. It takes an average of thirty minutes to complete a cycle.

How many containers will be needed?

(Round your answer to 1 decimal place, the tolerance is +/-0.1.)

Question 2: Robert produces 300 units of a product per hour and 30 units are needed to fill a container. It takes fifteen minutes to receive the materials needed from the previous workstation. The company currently uses a safety stock of 10 percent. Determine how the number of kanbans and the inventory level will be affected if the time required for Robert to receive the material increases to thirty minutes.

What are the units per minute?

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Accounting Basics: Formula review for kanbans
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