Help Problem 14-10 A supplier of instrument gauge clusters uses a kanban system

Question

Help Problem 14-10 A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported four at a time. A fabrication center produces approximately 4 gauges per hour. It takes approximately four hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 4 percent of the needed inventory as safety tock. How many kanban card sets are needed? (Round up your answer to the next whole number) Number of kanban card sets

Explanation / Answer

Number of Kanban Card sets K = DT*(1+X)/C

where D: demand per unit of time; T: lead time; C: container capacity; X: buffer, or safety factor

K = (4*4*(1+0.04))/4 = 4.16 cards = 4 cards (approximately)

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