Question

A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported Six at a time. A fabrication center produces approximately 5 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 40 percent of the needed inventory as safety stock. How many kanban card sets are needed?

Answer 1

Answer:

$N=\frac{5*2(1+0.4)}{6}\\N=2.333\ kanban$

Rounded to next  whole number:

N=3 kanban card sets

Explanation:

Given:

Number of gauges per hour=D=5 gauges per hour

Gauge cluster housing Transported=C=6

Hours for housing replenishment = T=2 hours

Safety Stock Percentage=P=40%

Find:

Number of kanban card sets needed=N=?

Solution:

Formula According to above mentioned Alphabets

$N=\frac{D*T(1+P)}{C}$

$N=\frac{5*2(1+0.4)}{6}\\N=2.333\ kanban$

Rounded to next  whole number:

N=3 kanban card sets