Case 6.2
The Jewel Golf Club Company, which recently began using a Kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3,000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips.
-Use the information in Case 6.2. How many Kanban containers would Jewel require if a 10% policy variable is used?

Question

Quizplus · Accepted Answer

The number of Kanban containers needed is calculated using the formula: Number of Kanbans = (Demand during lead time + Safety stock) / Container size. Lead time = Waiting time + Processing time = 0.20 + 0.10 = 0.30 days. Daily demand is 3,000 units, so demand during lead time = 3,000 units/day * 0.30 days = 900 units. With a 10% policy variable (safety stock), safety stock = 10% of 900 = 90 units. Total demand including safety stock = 900 + 90 = 990 units. Since each container holds 150 grips, the number of containers = 990 / 150 = 6.6. Therefore, Jewel would require 7 containers, rounding up to ensure enough capacity.

Case 6.2 the Jewel Golf Club Company, Which Recently Began Using a Using