Hartley? Electronics, Inc., in? Nashville, produces short runs of custom airwave

Question

Hartley? Electronics, Inc., in? Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the? owner, Janet? Hartley, to reduce inventory by introducing a kanban system. After several hours of? analysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you need for this? connector?

????daily demand = 1600 connectors

lead time = 3 days

safety stock = 1.00 day

kanban size = 500 connectors

number of kanbans = ____ kanbans  

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Explanation / Answer

Solution:

Number of kanbans is calculated as;

Number of kanbans = [Demand during lead time + Safety stock] / Kanban size

Number of kanbans = [(Daily demand x lead time) + Safety stock] / Kanban size

Number of kanbans = [(1600 x 3) + (1.00 x 1600)] / 500

Number of kanbans = 6400 / 500

Number of kanbans = 12.8 or 13 (rounding off to the nearest whole number)

Number of kanbans = 13 kanbans

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