Question

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.)

Answer 1

Answer:

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.