A supplier of instrument gauge clusters uses a kanban system to control material

Question

A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported three at a time. A fabrication center produces approximately 3 gauges per hour. It takes approximately three hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 3 percent of the needed inventory as safety stock. How many kanban card sets are needed? (Round up your answer to the next whole number.)
A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 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.)

Explanation / Answer

D= 3 gauges per hour

L= 3 hours

S= 0.03

C= 3 gauges

K= D*L*(1+S)/C

= 3*3*(1+0.03)/3

= 3.09 OR 3 kanban card sets

D= 2400/2 hours or 1200/hour or 20/minute

L=40

S=0.1

C=120

K= D*L*(1+S)/C

= 20*40*(1+0.10)/120

=7.33 OR 8 KANBAN CARDS

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