John is tasked with purchasing some new containers to use in the company's Kanban system.While he has most of the Kanban system configuration information, he cannot find the container size information.Find the container size using the Kanban system configuration information.
The average demand during lead time is 1025 units and the safety stock level is set to 19 units.There are currently 8 Kanban cards in the system.Find the closet size.
A) 50 units
B) 130 units
C) 25 units
D) 70 units

Question

Quizplus · Accepted Answer

First, we need to calculate the reorder point which is the sum of average demand during lead time and safety stock level: 1025 + 19 = 1044 units. 
Next, we need to calculate the container size which is the reorder point divided by the number of Kanban cards: 1044/8 = 130.5 units. 
Since we cannot have half a container, we round up to the nearest whole number and the closest option is choice B with a container size of 130 units.

John Is Tasked with Purchasing Some New Containers to Use