Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?
A) not enough information
B) 1
C) 5
D) 10
E) 13

Question

Quizplus · Accepted Answer

Lead time = 5 days
Daily demand = 25 computers
Safety stock = 5 computers

Total demand during lead time = lead time x daily demand = 5 x 25 = 125 computers

With safety stock, the total demand during lead time becomes = 125 + 5 = 130 computers

Since management wants to use 10 kanbans, each kanban should hold = Total demand during lead time / number of kanbans
= 130 / 10
= 13

Therefore, each kanban should hold 13 computers.

Lead Time for Computers Is 5 Days with Daily Demand