Case 8.3 Mike's Mustard Company Uses a Kanban System to Manufacture Bulk

Case 8.3
Mike's Mustard Company uses a Kanban system to manufacture bulk mustard in gallon containers for restaurants.The demand for container lids over an eight-hour production day is 1000 units.The average waiting time for a container of lids is 45 minutes.The processing time for a container of lids is 2 hours,and a container holds 70 lids.
-Use the information in Case 8.3.How many Kanban containers would be required if a 15% policy variable is used?

A) 6 or fewer
B) 7 or 8
C) 15 to 20
D) 20 or more

Correct Answer:

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