Question

Ferdows? Electronics, Inc.? (FEI), produces short runs of custom microwave radios for railroads and other industrial clients. You have been asked to reduce inventory by introducing a kanban system. After several hours of? analysis, you develop the following data for connectors used in one work cell. How many kanbans do you need for this? connector?

Daily demand 1,500
Production lead time 1
Safety stock .5
Kanban size 250
___ kanbans required

Answer 1

The Kanban required would be 6

Step-by-step explanation:

reorder quantity is calculated is the average daily demand multiplied by the average lead time.

Here RQ = 1500 X 1 = 1500.

Kanban Required = 1500/250 = 6