Question

The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data.

• The daily demand is 2000 units
• The production lead time is 4 days (this includes processing time, transport time, and waiting time)
• Management has decide to have a 1 day safety stock
•  One container fits 400 units

 

How many kanban containers will be needed to support this system?

Answer 1

Compute the number of kanban containers in the system as below,

Number of $\mathrm{K}$ anban $=\frac{\mathrm{L}_{\mathrm{d}}+\mathrm{SS}}{\mathrm{n}}$

Here.

Lead time demand, $L_{\mathrm{d}}=4$ days $\times 2000$ units per day $=8,000$ units Container size, $\mathrm{n}=400$ units Safety stock, $\mathrm{SS}=1$ day $\times 2,000$ units per day $=2,000$ units

$$\begin{aligned} \text { Number of Kanban } &=\frac{\mathrm{L}_{\mathrm{d}}+\mathrm{SS}}{\mathrm{n}} \\ &=\frac{8000+2000}{400} \\ &=25 \text { containers } \end{aligned}$$