Champion Cooling Company Uses a Kanban System at Their Two

Essay

Champion Cooling Company uses a kanban system at their two locations in the Oklahoma City Metroplex. The daily demand for fans is 2,000 at each location and management insists on using the same alpha level (0.1) at both locations. Location Reno uses containers that hold 20 items and takes 0.04 of a day to process a container. It takes 0.07 of a day to get a container filled and for it to wait during its cycle. Location Western uses containers that hold 24 items and takes 0.02 of a day to process a container. It takes 0.08 of a day to get a container filled and for it to wait during its cycle. Which location has the higher level of inventory? Assume that both locations round up to the next highest integer number of containers.