For Panama.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 2 day and the safety stock level is set to 15% of the average demand during the day.The container size is 10 units per container.The following is the demands over the last 10 days.
$$\begin{array} { c | r r r r r r r r r r }
\text { Days } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \
\hline \begin{array} { c }
\text { Daily } \
\text { demands }
\end{array} & 100 & 98 & 97 & 120 & 123 & 125 & 121 & 100 & 110 & 105
\end{array}$$
A) 10 cards
B) 5 cards
C) 30 cards
D) 25 cards

Question

For Panama.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 2 day and the safety stock level is set to 15% of the average demand during the day.The container size is 10 units per container.The following is the demands over the last 10 days.
$$\begin{array} { c | r r r r r r r r r r } 
\text { Days } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \
\hline \begin{array} { c } 
\text { Daily } \
\text { demands }
\end{array} & 100 & 98 & 97 & 120 & 123 & 125 & 121 & 100 & 110 & 105
\end{array}$$
A) 10 cards
B) 5 cards
C) 30 cards
D) 25 cards

Quizplus · Accepted Answer

First, we need to calculate the average daily demand:

Average Demand = (100+98+97+120+123+125+121+100+110+105)/10 = 110.9

Next, we need to calculate the safety stock level:

Safety Stock Level = 15% * 110.9 = 16.64 ≈ 17 units

Then, we need to calculate the reorder point:

Reorder Point = Lead Time * Average Demand + Safety Stock Level
= 2 * 110.9 + 17
= 238.8 ≈ 239

Finally, we need to calculate the number of Kanban cards:

Number of Kanban Cards = (Reorder Point / Container Size) + 1
= (239 / 10) + 1
= 24 + 1
= 25 cards

Therefore, the best choice is D) 25 cards. This number of cards should help prevent material shortages while maintaining an efficient Kanban system.

For Panama A) 10 Cards B) 5 Cards C) 30 Cards D)

For Panama A) 10 Cards
B) 5 Cards
C) 30 Cards
D)