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Webster Manufacturing Inc. is implementing a Just-in-Time (JIT) system and wants to
know how many Kanbans to use for the initial setup of its JIT system. The daily
demand is 400 units and each Kanban (i.e., container) holds 15 units. The combined
processing and waiting time per container is 0.7 days. If the initial alpha value for
safety stock is 0.6, how many Kanban containers should be authorized?
a. More than 10 but less than or equal to 15 Kanbans
b. More than 15 but less than or equal to 20 Kanbans
c. More than 20 but less than or equal to 25 Kanbans
d. More than 25 Kanbans
Answer:
Simulation can guarantee an optimal solution.
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De
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