Question

Transmissions are delivered to the fabrication line 3 at a time. It takes one hour for transmissions to be delivered. Approximately 3 vehicles are produced each hour, and management has decided that 30 percent of expected demand should be maintained as safety stock. How many kanban sets are needed?

Answer 1

Using the kanban calculation formula, considering the delivery time, production rate, and safety stock, it's determined that 2 kanban sets are needed to maintain a seamless JIT production process.

Step-by-step explanation:

The number of kanban sets required can be determined using the formula for kanban calculation: Number of Kanbans = (Demand during lead time + Safety stock) / Size of container. Assuming a continuous and smooth flow of production, which is essential for just-in-time (JIT) systems, the company's demand can be depicted by vehicle production rates, delivery rates, and the safety stock percentage.

Given that the delivery time for transmissions is 1 hour, and the production rate is 3 vehicles per hour, we first calculate the demand during lead time, which is simply the number of vehicles produced during the time it takes to deliver transmissions: 3 vehicles/hour × 1 hour = 3 vehicles. Next, since the management has decided to keep a safety stock of 30% of the expected demand, the safety stock is 30% of 3, which is 0.9 transmissions. Finally, since transmissions are delivered 3 at a time, the size of the container is 3.

Therefore, the number of kanban sets needed is (3 + 0.9) / 3 = 1.3, which we would round up to the nearest whole number, resulting in 2 kanban sets.