A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 111 parts per hour while running. The manager has assigned an inefficiency factor of. 21 to the center. Standard containers are designed to hold 5 dozen parts each. The cycle time for parts containers is about 100 minutes. How many containers are needed?

Answer: 4 containers

Explanation:

The formula used to get the number of containers that are needed will be:

N = DT (1+X) / C

where,

N = total containers

D = planned usage rate used by the work center = 111 parts per hour

T = average waiting time = 100 minutes = 100/60 hours = 1.67 hours

X = inefficiency factor = 0.21

C = capacity of standard container = 5 dozens = 5 * 12 = 60 parts

N = DT (1+X) / C

N = (111 * 1.67) (1 + 0.21) / 60

N = (185.37 * 1.21) / 60

N = 224.2977/60

N = 3.738

N = 4 approximately

4 containers will be needed