Question

JL.62 Durabright wants to establish kanbans to feed a newly installed work cell for its line of LED traffic signal lamps. The daily production (demand) rate for this new family of products is 105 units. The supplier lead time for the bulb housing, used by all products in this product family, is 12 days. They want to keep 1.75 days of safety stock of this housing on hand (the safety stock factor). The kanban size for the bulb housing components is 37 units. How many kanbans do they require? (Display your answer to the most appropriate whole

Answer 1

Answer:

3

Explanation:

Data provided in the question

Daily production = 105 units

Supplier lead time = 12 days

Safety stock = 1.75 days

Kanban size = 37 units

So by considering the above information, the required kanbans is

But before we have to determine the reorder point which is shown below:

= Daily production ×  (Lead time + safety stock)

= 105 units × (12 days + 1.75)

= 118.75 units

Now the required kanbans is

= Reorder point ÷ kanban size

= 118.75 units ÷ 37 units

= 3