You have been called in as a consultant to set up a Kanban control system.The first thing to 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 150 per hour.You estimate the safety stock should be set at 25 percent of the demand during lead time.The tote trays used as containers can hold 8 units of stock, and the lead time it takes to replenish an order is 2 hours.Which of the following is the number of Kanban card sets necessary to support this situation.You found that the number of Kanban cards needed is 47.Your client now tells you that they miscalculated the demand and the true demand is 300 per hour.All other things remain the same.What is the most appropriate answer from the choices below?

Question

Quizplus · Accepted Answer

To meet the new demand of 300 per hour, we need to recalculate the number of Kanban cards required. 
Demand during lead time = 300 x 2 = 600 units 
Safety stock = 25% of 600 = 150 units 
Total inventory = demand during lead time + safety stock = 600 + 150 = 750 units 
Tote tray capacity = 8 units 
Number of tote trays required = 750/8 = 93.75, rounded up to 94 
Number of Kanban card sets required = number of tote trays required = 94 
Therefore, the correct choice is C.

You Have Been Called in as a Consultant to Set