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11 May, 16:53

ToyMax seeks to determine the number of Kanban containers needed to feed a newly established work cell. The cell requires 600 parts over an eight-hour day. Production lead time for the parts needed by the cell is 3 hours and the cell supervisor recommends a safety stock equal to 50% of the cell's daily production. Assuming a container size of 100 parts, how many containers are needed for the new cell?

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  1. 11 May, 17:22
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    5.25 containers are needed

    Explanation:

    Given:

    Total Demand for 8 hour = 600

    Safety stock = 50%

    Container size = 100

    Lead hour = 3 hour

    Computation of container required:

    Demand for an hour = 600/8 = 75

    Safety stock = 50% of 600 = 300

    Needed container = [ (Demand for an hour x Lead hour) + Safety stock ] / 100

    = [ (75 x 3) + 300] / 100

    = 525 / 100

    =5.25

    Therefore, 5.25 containers are needed
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