Case 6.1
The Edward James Toy Company uses a Kanban system to make plastic wheels that are a component of several toys. The waiting time for a container of the wheels during production is 0.25 day; average processing time is 0.15 day per container. Each container holds 200 wheels. The company uses 2,000 wheels a day in the production of its products.
-Use the information in Case 6.1. Using a policy variable of 5%, calculate the number of Kanban containers needed for the wheels.
A) three or fewer
B) four or five
C) five or six
D) seven or more

Question

Quizplus · Accepted Answer

The number of Kanban containers needed can be calculated using the formula: Number of Kanbans = (Demand during lead time + Safety stock) / Container size. Lead time = Waiting time + Processing time = 0.25 + 0.15 = 0.4 days. Daily demand = 2,000 wheels, so demand during lead time = 0.4 * 2,000 = 800 wheels. With a policy variable (safety factor) of 5%, safety stock = 5% of 800 = 40 wheels. Total demand including safety stock = 800 + 40 = 840 wheels. Since each container holds 200 wheels, the number of containers needed = 840 / 200 = 4.2, which rounds to 4 or 5 containers, fitting the option of four or five.

Case 6.1 the Edward James Toy Company Uses a Kanban System to System