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The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data: The daily demand is 2500 units. The production lead
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12 votes
12 votes
The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data: The daily demand is 2500 units. The production lead time is 3 days (this includes processing time, transport time, and waiting time). Management has decided to have 1.5 days of safety stock. One container fits 250 units.How many kanban containers will be needed to support this system?

User DSchmidt
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1 Answer

11 votes
11 votes

Answer: 45 containers

Step-by-step explanation:

The number of containers needed is calculated by:

= (Expected demand during Lead time + Safety Stock) / Container Capacity

Expected demand during Lead time = Daily demand * Lead time

= 2,500 * 3

= 7,500 units

Safety stock = 1.5 days * 2,500

= 3,750 units

Number of containers needed:

= (7,500 + 3,750) / 250

= 45 containers

User Paget
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3.3k points
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