Question

Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately five vehicles are produced each hour, and management has decided that 40 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed?

Answer 1

the number of kanbans card sets required is 1.75 kanban sets

Step-by-step explanation:

The computation of the number of kanbans card sets required is as follows:

Kanban cards is

= Average number of demand × lead time × (1 + Safety stock) ÷ Size of the container

= 5 × 1 × (1 + 0.40) ÷ 4

= 7 ÷ 4

= 1.75 kanban sets

hence, the number of kanbans card sets required is 1.75 kanban sets

We simply applied the above formula so that the correct value could come

And, the same is to be considered