The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following dа ta: • The daily demand is 2000 units. • The production lead time is 4 days (this includes processing time, transport time, and waiting time). • Management has decided to have 1 day of safety stock. • One container fits 400 units. How many kanban containers will be needed to support this system?

Question

Hollyn

Business

27 October, 20:17

The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following dа ta: • The daily demand is 2000 units. • The production lead time is 4 days (this includes processing time, transport time, and waiting time). • Management has decided to have 1 day of safety stock. • One container fits 400 units. How many kanban containers will be needed to support this system?

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Answers (1)

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Karly · Answer 1

25 containers

Explanation:

The computation of the number of kanban containers required is shown below:

= (Lead time demand + Safety stock) : Container size

where,

Lead time demand is

= 2,000 units * 4 days

= 8,000 units

Container size = 400 units

Safety Stock is

= 1 day * 2,000 units

= 2,000 units

So, the number of kanban containers required is

= (8,000 units + 2,000 units) : (400 units)

= 25 containers

We simply applied the above formula