Durabright wants to establish kanbans to feed a newly installed work cell for it

Question

Durabright wants to establish kanbans to feed a newly installed work cell for its line of LED traffic signal lamps. The daily production (demand) rate for this new family of products is 40 units. The supplier lead time for the bulb housing, used by all products in this product family, is 4 days. They want to keep 1.25 days of safety stock of this housing on hand (the safety stock factor). The kanban size for the bulb housing components is 20 units. How many kanbans do they require? (Display your answer to the most appropriate whole number.)

Explanation / Answer

Daily production(demand) rate = 40 units per day

Lead time = 4 days

Safety stock = 1.25 days

Kanban container size = 20 units

Reorder point = Demand rate * ( Lead time + safety stock) = 40*(4+1.25) = 210 units

Number of Kanbans required = Reorder point / container size = 210/20 = 10.5 (this is fraction, so we need to round up to next whole number)

Number of kanbans requried = 11

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