A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication centre produces approximately 10 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many kanban card sets are needed?© BrainMass Inc. brainmass.com June 3, 2020, 9:01 pm ad1c9bdddf
Kanban = (average demand during lead tiime + safety stock) / container quantity ...
This solution describes the Kanban equation and provides calculations and answers.