Given the following information pertaining to item AX143,determine the appropriate number of kanban cards that should be used to support production. Demand rate = 500 units/week
Time for container to complete circuit = 2 weeks
Safety stock = 30 percent
Size of container = 5 units

Question

Given the following information pertaining to item AX143,determine the appropriate number of kanban cards that should be used to support production. Demand rate = 500 units/week
Time for container to complete circuit = 2 weeks
Safety stock = 30 percent
Size of container = 5 units
A)<100 units
B)Between 100 and 500 units
C)>500 units
D)There is not enough information to answer the question

Quizplus · Accepted Answer

First, we need to calculate the total demand during the time for container to complete circuit (2 weeks): 
Total demand = demand rate x time for container to complete circuit = 500 units/week x 2 weeks = 1000 units
Next, we need to calculate the safety stock: 
Safety stock = 30% x total demand = 0.30 x 1000 units = 300 units
Therefore, the total quantity that needs to be supplied is: 
Total quantity = total demand + safety stock = 1000 units + 300 units = 1300 units
Finally, we need to calculate the number of containers required: 
Number of containers = Total quantity / Size of container = 1300 units / 5 units = 260 containers
Each container should have a kanban card, so the appropriate number of kanban cards is 260.

Given the Following Information Pertaining to Item AX143,determine the Appropriate