Lead time for computers is 5 days with daily demand of 15 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?
A) 25
B) 1
C) 8
D) 10
E) 13

Question

Quizplus · Accepted Answer

First, we need to calculate the reorder point (ROP) using the lead time demand formula:
ROP = lead time x daily demand + safety stock
ROP = 5 x 15 + 5
ROP = 80 computers
Next, we need to calculate the size of each kanban using the kanban formula:
Kanban size = ROP / number of kanbans
Kanban size = 80 / 10
Kanban size = 8 computers
Therefore, each kanban should hold 8 computers.

Lead Time for Computers Is 5 Days with Daily Demand