Question

A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication center produces approximately 10 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 20 percent of the needed inventory as safety stock. How many kanban card sets are needed? (Round up your answer to the nearest whole number.)
Number of kanban card sets ?

Answer 1

Answer: 2 kanban card sets will be needed.

Explanation: 20% of 10 gauges gives the safety inventory stock.

This will be 20/100 ×10=2

But 10 gauges are produced per hour out of which 2 will be kept as safety inventory stock, making it to be 10-2=8gauges per hour.

Number of kanban cards used for transporting gauges 8/5=1.6

1.6= 2to the nearest whole number.