In setting up a Kanban control system you need to determine the number of kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20 percent of the demand during lead time, the container size is 4, and the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed?
A) 60
B) 80
C) 90
D) 120
E) 150

Question

Quizplus · Accepted Answer

The number of Kanban card sets needed is calculated using the formula: Number of Kanbans = (Demand during lead time + Safety stock) / Container size. Here, Demand during lead time = 50 units per hour * 8 hours = 400 units. Safety stock = 20% of 400 = 80 units. Thus, Total demand including safety stock = 400 + 80 = 480 units. With a container size of 4, the number of Kanban card sets = 480 / 4 = 120.

In Setting Up a Kanban Control System You Need to Determine