Question

Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately four vehicles are produced each hour, and management has decided that 50 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed?

Answer 1

3 sets of kanban cards to manage the production and maintain safety stock based on the given parameters.

To determine the number of kanban card sets needed, you can use the following formula:

Number of Kanban Card Sets=( Demand per time period×Lead time in time periods / Production batch size )+Safety Stock

Given information:

Demand per time period: 4 vehicles per hour

Lead time in time periods: 1 hour (time for transmissions to be delivered)

Production batch size: 4 transmissions (since transmissions are delivered four at a time)

Safety Stock: 50% of expected demand

Let's calculate:

Demand per time period=4 vehicles/hour

Lead time in time periods=1 hour

Production batch size=4 transmissions/batch

Safety Stock=0.5×Demand per time period=0.5×4=2 vehicles

Now plug these values into the formula:

Number of Kanban Card Sets=( 4 × 1 / 4​ )+2=3 sets

Therefore, you would need 3 sets of kanban cards to manage the production and maintain safety stock based on the given parameters.