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1) For US. Inc., there have been having problems with deciding on the number of

ID: 389169 • Letter: 1

Question

1) For US. Inc., there have been having problems with deciding on the number of Kanban cards in the system. There were several material shortages during the last period. In order to prevent shortages while maintaining an efficient Kanban system, how many Kanban cards should be released in the system?

The lead time is 1 day and the safety stock level is set to 10% of the average demand during the day. The container size is 15 units per container. The following is the demands over the last 10 days:

Days

1

2

3

4

5

6

7

8

9

10

Daily demands

100

98

97

120

123

125

121

100

110

105

Select one:

a. 15 cards

b. 8 cards

c. 5 cards

d. 12 cards

Days

1

2

3

4

5

6

7

8

9

10

Daily demands

100

98

97

120

123

125

121

100

110

105

Explanation / Answer

y = (DT(1+x))/C=110x1(1+.1)/15=8 cards

Average demand=1099/10=110 rounded off

Y: number of cards

D: demand per unit of time

T: lead time

C: container capacity

X: buffer, or safety factor