Mom &Pop Inc.uses 6 kanban cards for a system with a container size of 500 units.Using the demand information bellow, find the safety stock level.The estimated lead time is 1 day.
$$\begin{array} { c | c c c c c c }
\text { Daily } & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Demand } & 1,000 & 500 & 3,000 & 4,000 & 3,000 & 500
\end{array}$$
A) 1,000 units
B) 1,200 units
C) 250 units
D) 800 units

Question

Mom &Pop Inc.uses 6 kanban cards for a system with a container size of 500 units.Using the demand information bellow, find the safety stock level.The estimated lead time is 1 day.
$$\begin{array} { c | c c c c c c } 
\text { Daily } & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Demand } & 1,000 & 500 & 3,000 & 4,000 & 3,000 & 500
\end{array}$$
A) 1,000 units
B) 1,200 units
C) 250 units
D) 800 units

Quizplus · Accepted Answer

The safety stock level is calculated as the difference between the maximum daily demand and the daily production quantity covered by one kanban card. The maximum daily demand is 4,000 units. With 6 kanban cards and a container size of 500 units, the system covers 3,000 units daily (6 cards * 500 units per card). Therefore, the safety stock level is 4,000 units (max demand) - 3,000 units (covered by kanban) = 1,000 units.

Mom &Pop Inc A) 1,000 Units B) 1,200 Units C) 250 Units D)

Mom &Pop Inc A) 1,000 Units
B) 1,200 Units
C) 250 Units
D)