CMA Intermediate · Operations Management and Strategic Management · Production Planning and Control
A Kanban system for a component has daily demand of 400 units, lead time (production plus waiting and transit) of 0.5 day, safety factor of 10% and container capacity of 20 units. The number of Kanbans required is:
The number of Kanbans required is 11. Using demand of 400 units per day, lead time of 0.5 day and a 10% safety factor, requirement is 400 x 0.5 x 1.10 = 220 units, which divided by the container size of 20 gives 11 Kanbans.
- A10
- B11Correct
- C12
- D20
Explanation
Number of Kanbans = Demand x Lead time x (1 + safety factor) / Container size = 400 x 0.5 x 1.10 / 20 = 220/20 = 11. Ignoring the safety factor gives 10, which is wrong because stock cover is required.
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