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You would like to develop a pull production system in your shop floor. For one process “P001” producing small springs for a pen, the daily demand is 150 units. Whenever you order the raw material for this spring manufacturing, you need to wait 6 days. One day, your boss asked how many bins of size 100 (a bin can store up to 100 springs) your department needs to carry in this process P001. Based on historical analysis, your department keeps 10% safety stock to prevent any inventory shortage during the order lead time (6 days). If needed, assume that 1 year = 365 days. Hint: think of the order lead time and lead time demand.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93099128

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