Question

JIT /Lean - Kanban: Daily demand for a product is 200 units. The production lead time (wait time + production time) for a container is 2 days. A 1-day safety stock is kept. How many kanban containers will be needed if each container holds 50 units? [Show calculations.]

Answer 1

Consider the information given for the manufacturing schedule:

Average Demand, \(\mathrm{d}=200\) units Lead Time, \(\mathrm{L}=2\) days Safety Stock, \(\mathrm{s}=1\)-day stock \(=200\) units Quantity in container, \(\mathrm{c}=50\) units

Calculate the number of containers using the formula given below:

Number of kanbans \(=\frac{d L+S}{c}\)

Here, \(d=\) Daily Demand \(L=\) Lead time

\(S=\) Safety Stock

\(c=\) Quantity of container

$$ \begin{aligned} \text { Number of kanbans } &=\frac{(200 \times 2)+200}{50} \\ &=\frac{600}{50} \\ &=12 \text { containers } \end{aligned} $$

Thus, 12 Kanban containers are required.