QUESTION 1

• Discuss the supply chain implications of the lean system emphasis on close supplier ties?
• A company using a kanban system produces, among other products, a part L105A. The daily demand for part L105A is 960 units. The average waiting time for a container of parts is 0.6 days and the processing time for a container of L105A is 0.2 days. The container holds 80 units. Currently, 12 containers are used for this item.
• What is the safety stock rate implied in this system?
• Suppose that no safety stock is used. How many containers would be needed now?
• ABC Electrical produces surge protectors for the computer industry. On one of the assembly lines in its plant ABC produces two end-product models of surge protectors. The data shown below are for the two products and their components.
  

Component operations at ABC Electrical have been recently converted to JIT operations. Use the mixed model scheduling approach to reduce demand variation at the component manufacturing stations.