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 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

Step 1: Calculate the demand during lead time (DLT)

DLT = expected demand during lead time = 1,200 units/hour x 10 hours = 12,000 units

Step 2: Calculate the safety stock (SS)

SS = 5% of DLT = 0.05 x 12,000 = 600 units

Step 3: Calculate the container size

Container size = number of units per container = 2 units

Step 4: Calculate the number of containers required

Number of containers required = DLT + SS / container size = (12,000 + 600) / 2 = 6,300 containers

Step 5: Calculate the number of Kanban card sets required

Number of Kanban card sets = number of containers / 2 = 6,300 / 2 = 3,150

Therefore, the correct answer is C) 6,300.

You Have Been Called in as a Consultant to Set