you have been called in as a consultant to set up a kanban control system. the first thing to do is to…

you have been called in as a consultant to set up a kanban control system. the first thing to do is to determine the number of kanban card sets needed. your research shows that the expected demand during lead time for a particular component is 150 per hour. you estimate the safety stock should be set at 25 percent of the demand during lead time. the tote trays used as containers can hold 8 units of stock, and the lead time it takes to replenish an order is 2 hours. you found that the number of kanban cards needed is 47. your client now tells you that they miscalculated the demand and the true demand is 182 per hour. all other things remain the same. what is the correct answer from the choices below?\n\nnumber of kanban cardsets will be 57.\nnumber of kanban cardsets will be 48.\nnumber of kanban cardsets will be 55.\nnumber of kanban cardsets will stay the same.

you have been called in as a consultant to set up a kanban control system. the first thing to do is to determine the number of kanban card sets needed. your research shows that the expected demand during lead time for a particular component is 150 per hour. you estimate the safety stock should be set at 25 percent of the demand during lead time. the tote trays used as containers can hold 8 units of stock, and the lead time it takes to replenish an order is 2 hours. you found that the number of kanban cards needed is 47. your client now tells you that they miscalculated the demand and the true demand is 182 per hour. all other things remain the same. what is the correct answer from the choices below?\n\nnumber of kanban cardsets will be 57.\nnumber of kanban cardsets will be 48.\nnumber of kanban cardsets will be 55.\nnumber of kanban cardsets will stay the same.

Answer

Explanation:

Step1: Calculate new demand during lead - time

The lead - time is 2 hours and the new demand rate is 182 per hour. So the demand during lead - time $D_{L}=182\times2 = 364$ units.

Step2: Calculate safety stock

The safety stock $SS$ is 25% of the demand during lead - time. So $SS = 0.25\times364=91$ units.

Step3: Calculate total demand including safety stock

The total demand including safety stock $T = D_{L}+SS=364 + 91=455$ units.

Step4: Calculate number of kanban card sets

The container size $C = 8$ units. The number of kanban card sets $N=\frac{T}{C}=\frac{455}{8}=56.875\approx57$ (rounding up because we can't have a fraction of a kanban card set).

Answer:

Number of kanban card sets will be 57.