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6 March, 14:19

The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data.

a. The daily demand is 1,700 units.

b. The production lead time is 2 days (this includes processing time, transport time, and waiting time).

c. Management has decided to have 2 day (s) of safety stock

d. One container fits 350 units

How many kanban containers will be needed to support this system?

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Answers (1)
  1. 6 March, 16:45
    0
    19

    Explanation:

    Daily demand (d) = 1700 units

    Lead time (L) = 2days

    Demand during lead time = d x L = 1700x2 = 3400

    Safety stock = 2 days

    Safety stock level = d x 2 = 1700x2 = 3400 units

    Container size = 350 units

    Kanban needed = (demand during lead time + Safety stock level) / container size

    = (3400+3400) / 350

    = 19.4 or rounded to 19 containers
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