Question

In: Operations Management

You have just been hired to manage internal resources for a business that makes use of...

You have just been hired to manage internal resources for a business that makes use of complex, internal paper forms that MUST always be on hand. The forms are used daily at rates (depending on how busy the business is that day) ranging from 0 to 150 per day. Once a re-stocking order (for these forms) is placed, because of their complexity, it can take from 3 days to 10 days to get the re-supply of 3000 forms printed and delivered. The business must never run out of forms but because they are complex, expensive and can change, it is important that only a minimum number are in stock (to guarantee a supply). Assume that when you start your new job there are 1200 forms in stock.

  • How good of a job was the previous holder of your position doing?
  • What should you do about ordering new forms?
  • Where should you place the Kanban to satisfy the internal business policy?

Solutions

Expert Solution

Question: How good job was the previous holder of your position doing?

Answer: the previous holder was doing good job as taking 3000 re stocked in 10 working days and we need minimum is only 150

so if we divide 3000 by 10 its 300

that means 300 is a good no. it is almost double

Question: How would you do about ordering new forms?

Answer: I would prefer re-stocking to 2000 and ensure it deliver in 10 days

as their are chances of ibeing tem change are also and being its complex and expensive, i will slow down the production and limit it to required need

Question : Where should you place the Kanban to satisfy the internal business policy?

Answer: As Kanban method helps gradually improve the delivery of your products and services

so i will place it to eliminate the bottlenecksin your system, improve flow and reduce cycle time

and it also help you to deliver more continously and get faster feedback to amke any chnages that may be needed by our customer.


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