ABC Manufacturing Inc. uses a Kanban system for a component. The daily demand is 800 units. Each container has a combined waiting and processing time of 0.34 days. If the container size is 50 and efficiency (safety) factor is 9 percent, how many Kanban card sets should be authorized?
A) 5 sets
B) 6 sets
C) 7 sets
D) 8 sets

Question

ABC Manufacturing Inc. uses a Kanban system for a component. The daily demand is 800 units. Each container has a combined waiting and processing time of 0.34 days. If the container size is 50 and efficiency (safety) factor is 9 percent, how many Kanban card sets should be authorized?
A)	5 sets
B)	6 sets
C)	7 sets
D)	8 sets

Quizplus · Accepted Answer

To calculate the number of Kanban card sets needed, use the formula: Number of Kanbans = (Demand during lead time + Safety stock) / Container size. First, calculate the demand during lead time: Daily demand * Lead time = 800 units/day * 0.34 days = 272 units. Then, calculate the safety stock: Safety stock = Demand during lead time * Safety factor = 272 units * 9% = 24.48 units. Add the demand during lead time and safety stock, then divide by the container size: (272 + 24.48) / 50 = 296.48 / 50 = 5.93. Since you can't have a fraction of a Kanban card set, round up to the nearest whole number, which is 6.