CMA Intermediate · Operations Management and Strategic Management · Lean Operations and JIT
A Kanban system for a component has daily demand of 400 units, lead time (processing plus waiting plus transit) of 0.5 day, a safety stock policy of 10% of lead-time demand, and each container holds 20 units. How many Kanban cards are needed?
Eleven Kanban cards are needed. Lead-time demand is 400 x 0.5 = 200 units, safety stock of 10% raises this to 220 units, and dividing by the container size of 20 units gives 11 containers, hence 11 cards.
- A10
- B11Correct
- C12
- D22
Explanation
Lead-time demand = 400 x 0.5 = 200 units. Adding 10% safety stock gives 200 x 1.10 = 220 units. Cards = 220 / 20 = 11. Option 10 ignores safety stock; 22 forgets to apply the 0.5 day lead time in a different way (using 400 x 1.1/20).
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