16.

2 ChipGillikinscompanywantstoestablishkanbanstofeedanewly
establishedworkcell.Thefollowingdatahavebeenprovided.Howmany
kanbansareneeded?

16.3 ChrisMillikanManufacturing,Inc.,ismovingtokanbansto
supportitstelephoneswitchingboardassemblylines.Determinethesizeof
thekanbanforsubassembliesandthenumberofkanbansneeded.
16.5 DiscountMart,amajorEastCoastretailer,wantstodeterminethe
economicorderquantity(seeChapter12forEOQformulas)foritshalogen
lamps.ItcurrentlybuysallhalogenlampsfromSpecialtyLighting
Manufacturers,inAtlanta.Annualdemandis2,000lamps,orderingcostper
orderis$30,annualcarryingcostperlampis$12.

a) WhatistheEOQ?

b) Whatarethetotalannualcostsofholdingandordering(managing)
thisinventory?

c) HowmanyordersshouldDiscountMartplacewithSpecialtyLighting
peryear?

Answers

16.2 3.75,or4kanbans