In a Kanban system, in the formula (i.e., K = [d (p + w)(1 + $\alpha$)]/C), the alpha ($\alpha$) is analogous to _____.
A) demand during the lead time
B) a form of safety stock
C) capacity utilization
D) the reorder point

Question

Quizplus · Accepted Answer

Alpha (F1F1F1S1F1F1F10) in the Kanban formula represents a form of safety stock. It accounts for the variability in demand during the lead time, which can be unpredictable. Setting a higher value for alpha increases the amount of safety stock, providing a buffer against demand fluctuations.

In a Kanban System, in the Formula (I α\alphaα )]/C), the Alpha

In a Kanban System, in the Formula (I $\alpha$ )]/C), the Alpha