Question

Ferdows​ Electronics, Inc.​ (FEI), produces short runs of custom microwave radios for railroads and other industrial clients. You have been asked to reduce inventory by introducing a kanban system. After several hours of​ analysis, you develop the following data for connectors used in one work cell. How many kanbans do you need for this​ connector? Daily demand ​1,500 radios Production lead time 1 day Safety stock ​1/2 day Kanban size 250 radios 9 kanbans are required ​(enter your response as a whole​ number).

Answer 1

Answer:

9 kanban

Explanation:

The calculation of the number of kanban containers needed is given below:

= (Lead time demand + Safety stock) ÷ kanban size

where,

Lead time demand is

= 1,500 radios × 1 days

= 1,500 radios

Container size = 250 radios

Safety Stock is

= 1 ÷ 2 day × 1,500 radios

= 750 radios

So, the number of kanban containers needed is

= (1,500 radios + 750 radios) ÷ (250 radios)

= 9 kanban

We simply used the above formula to find out the required kanbans