An automobile transmission manufacturer is considering using a jit approach to replenish its stock of transmissions. daily demand for transmission #230 is 55 transmissions per day, and they are built in groups of six transmissions. total assembly and waiting time is two days. the supervisor wants to use an alpha value (α) of 1, or 100 percent. 1. how many kanbans are required? 2. what is the maximum authorized inventory? 3. what are the pros and cons of using such a high alpha (α) value?

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine