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 percent 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

Step 1: Calculate demand during lead time = 1,200/hour x 10 hours = 12,000
Step 2: Calculate safety stock = 5% x 12,000 = 600
Step 3: Calculate container quantity = 2 units (given)
Step 4: Calculate total inventory = demand during lead time + safety stock = 12,000 + 600 = 12,600
Step 5: Calculate number of containers needed = total inventory / container quantity = 12,600 / 2 = 6,300
Step 6: Calculate kanban card sets needed = number of containers needed / 2 = 6,300 / 2 = 3,150 (each card set has 2 cards)
Step 7: Round up to the nearest whole number = 3,150 rounded up to 5,000

Therefore, the answer is C) 6,300.

You Have Been Called in as a Consultant to Set