A hinge manufacturing company employs a Kanban system for a component part. The daily demand is...
A hinge manufacturing company employs a Kanban system for a component part. The daily demand is 870 hinges. Each container has a waiting time of 0.07 days and a processing time of 0.28 days. The container size is 58 hinges, and the safety factor (α) is 12 percent.
Given this data, the number of Kanbans necessary for the system is:
a. less than or equal to 4 Kanbans.
b. more than 4 but less than or equal to 8 Kanbans.
c. more than 8 but less than or equal to 12 Kanbans.
d. more than 12 but less than or equal to 16 Kanbans.
Homework Answers
Answer: b. more than 4 but less than or equal to 8 Kanbans.
Explanation:
| daily demand | d | 870 | units |
| product lead time | l | 0.35 | day |
| safety stock |
12% safety factor |
0.12 | day |
| kanban size | k | 58 | units |
| Average demand during lead time | d*l | 304.5 | |
| safety stock in units, ss | safety stock in days*d | 104.4 | |
| No. of Kanbans | (Average demand during lead time+ss/)k | 7.05 | kanbans |
kanbans required is 8.
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