In: Operations Management
A company is trying to reduce inventory by installing a kanban system for compressors on one of its assembly lines. The setup cost = $10, Annual holding cost per compressor is $100, Daily production is 200 compressors, Annual usage is 20000, The lead time is 3 days, safety stock is 12 day’s production of compressors. Determine the size of the kanban and the number of kanbans (containers) needed.
setup cost (S)= $10,
Annual holding cost per compressor (H) is $100
Annual usage (D)= 20000
Daily production =200
Lead time = 3 days
Safety stock = 12 days of production = 12*200 =2400
Size of kanban =?
No. of Kanban containers =?
Size of Kanban =
= 64.25
Rouding to integer Q = 64
Size of Kanban = 64
No. of Kanban containers =
=46.87
No. of Kanban containers = 47 (rouding to next integer to allow some slack)
One observation is that due to high level of safety stock, number of containers showing high quantity.
Answers:
Size of kanban =64
No. of Kanban containers =47
======================================END==============================================
I tried best to answer your question with all my expertise. If you liked answer, please give an Up-vote.
This would be encouraging for me, Thank you !!!