Question

our research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimate the safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock

Answer 1

6300.

Step-by-step explanation:

Here is the complete question: Our research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimate the safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock and lead time to replenish an order is 10 hours. What is the number of kanban card sets necessary to support the situation?

Given: Average demand of the product= 1200 per hour

Safety factor is 5%

Kanban cycle time= 10 hours

Number of Kanban container can hold= 2 units

Now, calculating the number of kanban card per kanban container.

Formula; Number of unit per kanban container=
`(D* (1+SF)* KCT)/(C)`

Where, D= Average demand of the product

S= Safety factor

KCT= Kanban cycle time

C= Number of Kanban container can hold.

Number of unit per kanban container=
`(1200* (1+5\%)* 10)/(2)`

⇒ Number of unit per kanban container=
`(1200* 1.05* 10 )/(2) = (12600)/(2)`

∴ The number of kanban card per kanban container is 6300.