Question

Sidney’s Quick shop is a convenience store that is near campus and has regular demand for a locally made energy drink. Daily demand is for 190 bottles and it’s comes in containers of 58 bottles. There is a 3-day lead time for deliveries. Sidney wants to maintain safety stock of 120 bottles. They want to use a Kaban system for ordering. How many kanban containers should they have in their system?

Answer 1

To determine the number of kanban containers required, use the formula (Daily Demand x Lead Time) + Safety Stock. In this case, Sidney's Quick Shop should have 690 kanban containers.

Step-by-step explanation:

To determine the number of kanban containers required, we need to consider the daily demand, lead time, and safety stock. The daily demand for the energy drink is 190 bottles, and it comes in containers of 58 bottles. The lead time is 3 days, and the desired safety stock is 120 bottles.

The formula to calculate the number of kanban containers is:

(Daily Demand x Lead Time) + Safety Stock

Substituting the given values, we have: (190 x 3) + 120 = 690 bottles.

Therefore, Sidney's Quick shop should have 690 kanban containers in their system.