Consider a work center with a demand rate of 20 parts per hour and using a container that can hold 5 parts. It is estimated that the container takes 30 minutes to cycle through the work cell. Assume a safety stock level of 10 percent. What is the (rounded) value of K for this system?
A) 1
B) 2
C) 3
D) Cannot be determined from the information given

Question

Quizplus · Accepted Answer

First, we need to calculate the container replenishment time, which is equal to the container size divided by the demand rate, as follows:

Container Replenishment Time = Container Size / Demand Rate 
= 5 / 20 = 0.25 hours or 15 minutes

Next, we need to add the safety stock level to the replenishment time:

Total Lead Time = Container Replenishment Time + Safety Stock 
= 0.25 + (0.10 * 0.25) 
= 0.275 or 16.5 minutes

Finally, we can calculate K, which is the number of kanban containers needed in the system, as follows:

K = (Total Demand during Lead Time + Safety Stock) / Container Size 
= [(20 parts/hour) * (0.275 hours)] + (0.10 * (20 parts/hour)) / 5 
= 1.65 + 2 
= 3.65

Rounding up, we get K = 4, so the best choice is C.

Consider a Work Center with a Demand Rate of 20