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    Operations Management / Kanban system

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    A supplier provides parts to a manufacturing company that demands JIT deliveries. At the present time it takes 6 hours to make a round-trip between the supplier's warehouse and the customer, including loading, travel and unloading time. The lot size is 12 pallet loads on a truck, and the manufacturer uses 2 pallets per hour.

    How many trucks are needed to ship the pallets to the manufacturer?

    What is likely to happen if the trucks break down?

    How can the supplier ensure that the customer does not run out of parts even in the face of delivery problems or other uncertainties?

    What will happen if the manufacturer runs into trouble and shuts down for a period of 6 hours?

    If unexpected overtime is required, how do you effectively communicate the need to your workforce?

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    Solution Preview

    Q1. How many trucks are needed to ship the pallets to the manufacturer?
    Ideally 1 truck is needed to do the job because truck can take 12 pallets and takes 6 hours to do a round, total 48( 2pallets per hour x 24 hours) pallets are required in a day and therefore a truck which can make total 4 rounds ( 24 hours/ 6 hours taken for a trip ), can supply 48 pallets ( 12 pallets per round x 4 rounds).The system can be truck goes from supplier with a filled Kanban , reaches Manufacturer gives that Kanban to Manufacturer and collects empty Kanban from Manufacturer to again give to supplier and collecting material and filled Kanban.

    But being a continuous process the truck has to be rested and accordingly two trucks will ...

    Solution Summary

    The solution uses JIT management to calculate the best way to supply trucks and pallets for the manufacturer.