Case 8.2
The Jewel Golf Club Company,which recently began using a Kanban system,has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs.Daily demand for the grip is 3000 units,average waiting time during production is 0.20 day,processing time is 0.10 day per container,and a container holds 150 grips.
-Use the information in Case 8.2.How many Kanban containers would Jewel require if a 5% policy variable is used?

Question

Quizplus · Accepted Answer

The number of Kanban containers is calculated using the formula: Number of Kanbans = (Demand during lead time + Safety stock) / Container size. Here, Demand during lead time = 3000 units/day * (0.20 + 0.10) days = 900 units. Safety stock = 5% of 900 = 45 units. Total demand = 900 + 45 = 945 units. Number of Kanbans = 945 / 150 = 6.3, which rounds up to 7 containers.

Case 8.2 The Jewel Golf Club Company,which Recently Began Using a Kanban