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 Mike's Mustard require if the containers held only 15 pieces and a 5% policy variable is declared?

A) 10 or fewer
B) 11 to 20
C) 21 to 30
D) 31 or more

Correct Answer:

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