Question

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 2000 units The production lead time is 4 days (this includes processing time, transport time, and waiting time) Management has decio One container fits 400 units

How many kanban containers will be needed to support this system? _____ containers

Answer 1

25 kanban containers

Step-by-step explanation:

Given that,

Daily demand = 2,000 units

Production lead time = 4 days

Container size = 400 units

Lead time demand:

= Daily demand × Production lead time

= 2,000 units × 4 days

= 8,000 units

Safety Stock:

= Number of days × Daily demand

= 1 day × 2,000 units per day

= 2,000 units

Number of Kanban containers needed:

= (Lead time demand + Safety Stock) ÷ Container size

= (8,000 + 2,000) ÷ 400

= 10,000 ÷ 400

= 25