In setting up a Kanban control system you need to determine the number of Kanban card sets needed.If the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what is the number of Kanban card sets needed?
A)5
B)20
C)27
D)30
E)34

Question

Quizplus · Accepted Answer

The number of Kanban card sets is calculated using the formula: (Demand during lead time + Safety stock) / Container size. Demand during lead time is 25 units/hour * 5 hours = 125 units. Safety stock is 20% of 125, which is 25 units. Total demand including safety stock is 125 + 25 = 150 units. Dividing by the container size of 5 gives 150 / 5 = 30 Kanban card sets.

In Setting Up a Kanban Control System You Need to Determine