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. You found that the number of Kanban cards needed is 47. Your client now tells you that they miscalculated the demand and the true demand is 300 per hour. All other things remain the same. What is the most appropriate answer from the choices below?
A) Number of Kanban cards will stay the same at 47.
B) Number of Kanban cards will decrease to 24.
C) Number of Kanban cards will increase to 94.
D) Number of Kanban cards will increase to 107.
E) Number of Kanban cards will increase to 113.

Question

Quizplus · Accepted Answer

The formula to determine the number of Kanban card sets needed is:
(Number of containers) = (Demand during lead time + Safety stock) x Lead time / Container size
Plugging in the given values, we get:
(Number of containers) = (150 + (0.25 x 150)) x 2 / 8 = 47
However, with the corrected demand of 300 per hour, the new calculation would be:
(Number of containers) = (300 + (0.25 x 300)) x 2 / 8 = 94
Therefore, the number of Kanban card sets needed would increase to 94, making choice C the correct answer.

You Have Been Called in as a Consultant to Set