Liversuch Industries uses a kanban system to manage production of the J-15 subassembly. They have an hourly demand for 250 units and use containers that can hold 50 units each. It takes 90 minutes to fill and move a container of parts to the right place on the J-15 line that is currently rated at a 20% safety factor. How many production cards are needed?
A)540
B)100
C)9
D)1.5

Question

Quizplus · Accepted Answer

To determine the number of cards needed, we first need to calculate the total amount of inventory in the kanban system.

Each container holds 50 units and there is an hourly demand for 250 units, so we need 5 containers to satisfy the hourly demand.

Each container takes 90 minutes to fill and move, so the lead time for each container is 90 minutes.

To calculate the total inventory, we use the formula: 
Total inventory = (hourly demand x lead time) x safety factor

Total inventory = (250 units/hour x 90 minutes/container) x 1.2 (20% safety factor) 
Total inventory = 27,000 units

Since each card corresponds to one container, we need 27,000/50 = 540 production cards.

Therefore, the answer is C, 9 cards per 50.

Liversuch Industries Uses a Kanban System to Manage Production of the J-15