CMA Intermediate · Operations Management and Strategic Management · Lean Operations and JIT
A plant uses a Kanban system for a part with 600 units of daily demand, container size 25 units, and 12 Kanbans in circulation, with no safety allowance. What is the maximum lead time (in days) that the system can support?
The system can support a lead time of 0.5 day. With 12 Kanbans of 25 units each, 300 units circulate, and at 600 units of daily demand that stock covers 300 divided by 600, which equals half a day.
- A0.50 dayCorrect
- B0.40 day
- C2.00 days
- D0.25 day
Explanation
Number of Kanbans = demand x lead time / container size, so lead time = 12 x 25 / 600 = 300/600 = 0.5 day. Option 0.40 uses a wrong container size; 2.00 inverts the ratio.
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