Question

Given the following information pertaining to item AX143, determine the appropriate number of kanban cards that should be used to support production.
Demand rate = 500 units/week
Time for container to complete circuit = 2 weeks
Safety stock = 30 percent
Size of container = 5 units

Answer 1

Answer:

=260 units.

Explanation:

General formula for calculating Kanban Cards : $\frac{DT(1+x)}{C}$

= $\frac{500*2(1+0.30)}{5}$

=$\frac{1300}{5}$

=260 units.