Gibson Auto, a plant that produces many auto products, wants to implement a kanban framework to pull material through it

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Gibson Auto A Plant That Produces Many Auto Products Wants To Implement A Kanban Framework To Pull Material Through It 1 (91.79 KiB) Viewed 47 times

Gibson Auto, a plant that produces many auto products, wants to implement a kanban framework to pull material through its work centers. Every work center produces a specific family of products. One of the products made there 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 but not is separate units. Every time you place an order of rubber, the supplier can replenish 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 a. Calculate the EOQ container size of packages from supplier using the following assumptions: 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 b. How many kanban sets (rounded) are needed to manage the replenishment of the rubber and avoid shortages? c. You as an engineer you suggested a partial robotic automation in the production area and the company implemented the suggestions. The result was an increase in efficiency and the center now averages 15 assemblies per hour. Since there is more stability in the process, the safety stock was reduced to 5%. How many kanban cards (rounded) are now needed?