Calculate the number of kanbans needed at the ABC Company for the following two
ID: 2737571 • Letter: C
Question
Calculate the number of kanbans needed at the ABC Company for the following two products, produced in a factory that works eight hours per day, five days per week:
Product 1
Product 2
Usage
600/week
150/day
Lead time
1 week
2 weeks
Container size
45 units
35 units
Safety stock
15 percent
0
(Hint: Refer to Figure 9.19 on page 345 of your textbook for the formulation of the number of kanbans)
Product 1
Product 2
Usage
600/week
150/day
Lead time
1 week
2 weeks
Container size
45 units
35 units
Safety stock
15 percent
0
Explanation / Answer
Answer:
variable
Product 1
Product 2
Daily Demand (D)
600 /5
150
Lead Time (L)
5 days
10 days
Safety Stock (SS) ,
15%
0
EOQ
45
35
# of Kanbans=
D.L.(1+) / EOQ
120*5(1+0.15)/45
150*10*(1+0)/35
15.33
42.86
16 Cards
43 Cards
Total number of kanbans in
the system
59 Cards (16+43)
variable
Product 1
Product 2
Daily Demand (D)
600 /5
150
Lead Time (L)
5 days
10 days
Safety Stock (SS) ,
15%
0
EOQ
45
35
# of Kanbans=
D.L.(1+) / EOQ
120*5(1+0.15)/45
150*10*(1+0)/35
15.33
42.86
16 Cards
43 Cards
Total number of kanbans in
the system
59 Cards (16+43)
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