Table 7.2
A manufacturer using a kanban system has had problems with high inventory levels of one of the component parts it makes. Daily demand for the part is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 pieces.
-Use the information in Table 7.2.How many kanban containers would be required if a 5 % efficiency factor is used?
A) 3 or less
B) 4 or 5
C) 5 or 6
D) 7 or more

Question

Quizplus · Accepted Answer

To calculate the number of kanban containers required, we use the formula:
Number of kanban containers = (Demand during lead time + Safety stock) / Container size
Demand during lead time = Daily demand * Average waiting time + Processing time
Demand during lead time = 3000 * 0.20 + 0.10 = 610 units
Safety stock = Demand during lead time * Efficiency factor
Safety stock = 610 * 0.05 = 31 units
Number of kanban containers = (610 + 31) / 150
Number of kanban containers = 4.07
Rounding up to the nearest whole number, we get 5 or 6 kanban containers required. Therefore, the correct answer is (C) 5 or 6.

Table 7.2 a Manufacturer Using a Kanban System Has Had Problems with Problems