A bottling plant fills 2,400 bottles every two hours. The lead time is 20 minutes and a container accommodates 80 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed? (Round up your answer to the next whole number.)

Question

Business

Gabrielle Yates

12 July, 23:54

A bottling plant fills 2,400 bottles every two hours. The lead time is 20 minutes and a container accommodates 80 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed? (Round up your answer to the next whole number.)

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Answers (1)

Know the Answer?

Kael Moore · Answer 1

8 Kanban cards.

Explanation:

The values given are:

L = 40

C = 120

S = 10, 10/100=0.1

D = Since the average number of units that is demanded is 2400 and then the duration is 2 hours, it is also equivalent to 1200 units in 60 minutes.

D = 1200/60

D = 20

Therefore,

K = DL (1 + S) / C

= 20*40 (1+0.10) / 120

= 800*1.1/120

= 880/120

=7.333

K = 8 (rounded up to the next whole number)

Thus, 8 Kanban cards are needed.