Question

Hartley​ Electronics, Inc., in​ Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the​ owner, Janet​ Hartley, to reduce inventory by introducing a kanban system. After several hours of​ analysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you need for this​ connector?

Daily demand 600 connectors
Lead time 2 days
Safety stock 50 days
Kanban size 500 connectors

Answer 1

62.4kanbans

Step-by-step explanation:

Calculation to determine How many kanbans do you need for this​ connector

First step is to calculate the Demand During Lead Time

Using this formula

Demand During Lead Time= 2 days x Daily Demand

Let plug in the formula

Demand During Lead Time=2*600

Demand During Lead Time=1,200

Second step is to calculate the Safety Stock

Using this formula

Safety Stock= 50 days of Production x Daily Demand

Let plug in the formula

Safety Stock=50*600

Safety Stock=30,000

Third step is to calculate the Lot Size using this formula

Lot Size= Demand During Lead Time + Safety Stock

Let plug in the formula for

Lot Size=1200+30,000

Lot Size=31200

Now let calculate How many kanbans do you need for this​ connector. Using this formula

Numbers of kanbans =Demand During Lead Time + Safety Stock / Size of Container

Let plug in the formula

Numbers of kanbans=31200/500

Numbers of kanbans=62.4kanbans

Therefore How many kanbans do you need for this​ connector is 62.4