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22 June, 05:32

The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following dа ta: • The daily demand is 2000 units. • The production lead time is 4 days (this includes processing time, transport time, and waiting time). • Management has decided to have 1 day of safety stock. • One container fits 400 units. How many kanban containers will be needed to support this system?

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  1. 22 June, 09:25
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    25 containers

    Explanation:

    The computation of the number of kanban containers required is shown below:

    = (Lead time demand + Safety stock) : Container size

    where,

    Lead time demand is

    = 2,000 units * 4 days

    = 8,000 units

    Container size = 400 units

    Safety Stock is

    = 1 day * 2,000 units

    = 2,000 units

    So, the number of kanban containers required is

    = (8,000 units + 2,000 units) : (400 units)

    = 25 containers

    We simply applied the above formula
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