DeVry University, Chicago - BSOP 330 Chapter 16 1)Leblanc Electronics, Inc

DeVry University, Chicago - BSOP 330

Chapter 16

1)Leblanc Electronics, Inc., in Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the owner, Larry Leblanc, to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you need for this connector?

Safety stock      day

Kanban size 500 connectors

2. Chris Millikan Manufacturing, Inc., is moving to kan-bans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed.

3. Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity (see Chapter 12 for EOQ formulas) for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $30, annual carrying cost per lamp is $12.

1. What is the EOQ?

2. What are the total annual costs of holding and ordering (managing) this inventory?

3. How many orders should Discount-Mart place with Specialty Lighting per year?

4. Given the following information about a product, at Phyllis Simon’s firm, what is the appropriate setup time?