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 percent 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

The number of Kanban card sets is calculated using the formula: (Demand during lead time + Safety stock) / Container size. Demand during lead time is 150 units/hour * 2 hours = 300 units. Safety stock is 25% of 300 units = 75 units. Total units needed = 300 + 75 = 375 units. Number of Kanban card sets = 375 units / 8 units per container = 46.875, which rounds up to 47.

You Have Been Called in as a Consultant to Set