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 percent of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what the number of kanban card sets is 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 needed.

In Setting Up a Kanban Control System You Need to Determine