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Business, 27.09.2021 23:20 rowandohnalek

Jones Electric Motors uses a Kanban system to make motors for several garage door companies in the southeastern United States. The daily demand for motor housings used
in manufacturing is 200 units. The average waiting time for a container of parts is 0.2
day. The processing time for a container of housings is 0.1 day, and a container holds
10 housings.
a. Jones expects to maintain 8 containers and to do so how much safety stock
should be maintained?
b. Use the safety stock from part (a) to determine the required reduction in waiting
time if one container was removed. Assume that all other parameters remain
constant.

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