Hartley electronics, inc., in nashville, produces short runs of custom airwave scanners for the defense industry. you have been asked by the owner, janet hartley, to reduce inventory by introducing a kanban system. after several hours of analysis, you develop the following data for scanner connectors used in one work cell. how many kanbans do you need for this connector? daily demand 1,200 connectors 4 days lead time safety stock 1.00 day kanban size 500 connectors

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?