Answer Happy

a manufacturing plant that produces various automotive products,
wants to implement a Kanban to pull material through its
manufacturing work centers. Every work center produces a specify
family of products. One of the products are rubber mats. The
assembly of rubber mats involves cutting the rubber using a mold.
The rubber is pulled from warehouse into the work center based on
current demand. The rubber is purchased to an external supplier.
The supplier made and sells the rubber in packages or lots of units
of rubber not is separate units. Every time you place an order of
rubber, the supplier can respond to an order for a lot of rubber in
approximately 10 hours. The rubber mat assembly production work
center averages approximately 10 assemblies per hour. There is some
variability in the process, so the production manager has decided
to have safety stock equivalent to 8 percent of the needed
inventory.
Cost per order
$ 10.00
Production rate/day
13
Demand rate/day
10
Total days per year
260
Holding cost/year
$ 90.13
Safety Factor
0.15