The Edward James Toy Company uses a Kanban system to make plastic wheels that are a component of…

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The Edward James Toy Company uses a Kanban system to make plastic wheels that are a component of several toys. The waiting time for a container of the wheels during production is 0.25 day; average processing time is 0.15 day per container. Each container holds 200 wheels. The company uses 2000 wheels a day in the production of its products.
Use the information in Case 8.1. Using a policy variable of 5%, calculate the number of Kanban containers needed for the wheels.

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