ToyMax seeks to determine the number of Kanban containers needed to feed a newly established work cell. The cell requires 600 parts over an eight-hour day. Production lead time for the parts needed by the cell is 3 hours and the cell supervisor recommends a safety stock equal to 50% of the cell's daily production. Assuming a container size of 100 parts, how many containers are needed for the new cell?

Question

Business

Seamus Campos

21 April, 01:55

ToyMax seeks to determine the number of Kanban containers needed to feed a newly established work cell. The cell requires 600 parts over an eight-hour day. Production lead time for the parts needed by the cell is 3 hours and the cell supervisor recommends a safety stock equal to 50% of the cell's daily production. Assuming a container size of 100 parts, how many containers are needed for the new cell?

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Answers (1)

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Titus Calhoun · Answer 1

5.25 containers are needed

Explanation:

Given:

Total Demand for 8 hour = 600

Safety stock = 50%

Container size = 100

Lead hour = 3 hour

Computation of container required:

Demand for an hour = 600/8 = 75

Safety stock = 50% of 600 = 300

Needed container = [ (Demand for an hour x Lead hour) + Safety stock ] / 100

= [ (75 x 3) + 300] / 100

= 525 / 100

=5.25

Therefore, 5.25 containers are needed