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

1. Calculate the demand during lead time:
Demand during lead time = 1,200 units/hour x 10 hours = 12,000 units

2. Calculate the safety stock:
Safety stock = 5% x 12,000 units = 600 units

3. Calculate the total inventory:
Total inventory = demand during lead time + safety stock = 12,000 units + 600 units = 12,600 units

4. Calculate the number of containers needed:
Number of containers = Total inventory / container size = 12,600 units / 2 units per container = 6,300 containers

5. Calculate the number of Kanban card sets:
Number of Kanban card sets = Number of containers x 2 cards per container = 6,300 containers x 2 cards per container = 12,600 Kanban cards
Since each set of Kanban cards contains one withdrawal card and one production card, the answer is 6,300 (the nearest number divisible by 2). Therefore, the answer is C)6,300.

You Have Been Called in as a Consultant to Set