A bottling plant fills 2,400 bottles every two hours. The lead time is 20 minutes and a container accommodates 80 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed? (Round up your answer to the next whole number.)

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Business

9 December, 14:29

A bottling plant fills 2,400 bottles every two hours. The lead time is 20 minutes and a container accommodates 80 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed? (Round up your answer to the next whole number.)

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Answers (1)

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Elvis Hicks · Answer 1

8 Kanban cards.

Explanation:

The values given are:

L = 40

C = 120

S = 10, 10/100=0.1

D = Since the average number of units that is demanded is 2400 and then the duration is 2 hours, it is also equivalent to 1200 units in 60 minutes.

D = 1200/60

D = 20

Therefore,

K = DL (1 + S) / C

= 20*40 (1+0.10) / 120

= 800*1.1/120

= 880/120

=7.333

K = 8 (rounded up to the next whole number)

Thus, 8 Kanban cards are needed.