You have been called in as a consultant to set up a kanban control system. The first thing you do is to determine the number of kanban card sets needed. Your research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimate the safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock and the lead time to replenish an order is 10 hours. Which of the following is the number of kanban card sets necessary to support this situation?
A) 5,000
B) 5,500
C) 6,300
D) 6,500
E) 7,000

Question

Quizplus · Accepted Answer

The number of kanban card sets is calculated using the formula: (Demand during lead time + Safety stock) / Container size. Demand during lead time is 1,200 units/hour * 10 hours = 12,000 units. Safety stock is 5% of 12,000, which is 600 units. Total units needed = 12,000 + 600 = 12,600. With each container holding 2 units, the number of kanban card sets needed is 12,600 / 2 = 6,300.

You Have Been Called in as a Consultant to Set