For US.Inc., there have been having problems with deciding on the number of Kanban cards in the system.There were several material shortages during the last period.In order to prevent shortages while maintaining an efficient Kanban system, how many Kanban cards should be released in the system?
The lead time is 1 day and the safety stock level is set to 10% of the average demand during the day.The container size is 15 units per container.The following is the demands over the last 10 days:
$$\begin{array} { c | c c c c c c c c c c }
\text { Days } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \
\hline \begin{array} { c }
\text { Daily } \
\text { demands }
\end{array} & 100 & 98 & 97 & 120 & 123 & 125 & 121 & 100 & 110 & 105
\end{array}$$
A) 8 cards
B) 12 cards
C) 5 cards
D) 15 cards

Question

For US.Inc., there have been having problems with deciding on the number of Kanban cards in the system.There were several material shortages during the last period.In order to prevent shortages while maintaining an efficient Kanban system, how many Kanban cards should be released in the system?
The lead time is 1 day and the safety stock level is set to 10% of the average demand during the day.The container size is 15 units per container.The following is the demands over the last 10 days:
$$\begin{array} { c | c c c c c c c c c c } 
\text { Days } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \
\hline \begin{array} { c } 
\text { Daily } \
\text { demands }
\end{array} & 100 & 98 & 97 & 120 & 123 & 125 & 121 & 100 & 110 & 105
\end{array}$$
A) 8 cards
B) 12 cards
C) 5 cards
D) 15 cards

Quizplus · Accepted Answer

To calculate the number of Kanban cards, use the formula: Number of Kanban cards = (Demand during lead time + Safety stock) / Container size. The average daily demand is 109.9 units. Demand during lead time is 109.9 units. Safety stock is 10% of 109.9, which is 10.99 units. Total demand including safety stock is 120.89 units. Dividing by the container size of 15 gives approximately 8 cards.

For USInc, There Have Been Having Problems with Deciding on the the Number