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Calculating the number of kanban containers

The Jewel Golf Club Company, which recently began using a Kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips.How many Kanban containers would Jewel require if a 15% policy variable is used?

Solution Summary

Solution depicts the steps to estimate the number of kanban containers in the given case.