You have been called in as a consultant to set up a kanban control system. The first thing to do is to determine the number of kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 150 per hour. You estimate the safety stock should be set at 25% of the demand during lead time. The tote trays used as containers can hold 8 units of stock and the lead time it takes to replenish an order is 2 hours. Which of the following is the number of kanban card sets necessary to support this situation?
A) 42
B) 47
C) 68
D) 89
E) 94

Question

Quizplus · Accepted Answer

To calculate the number of kanban card sets, use the formula: Number of Kanban = (Demand during lead time + Safety stock) / Container size. Demand during lead time = 150 units/hour * 2 hours = 300 units. Safety stock = 25% of 300 = 75 units. Total = 300 + 75 = 375 units. Container size = 8 units. Number of Kanban = 375 / 8 = 46.875, rounded up to 47.

You Have Been Called in as a Consultant to Set