. Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately four vehicles are produced each hour, and management has decided that 50 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed?

Two Kanban cards is needed

Explanation:

Solution

The first step to take is to compute the required  Kanban number of card sets.

By applying the formula, we have the following

Kanban cards = DL (1 +S)/C

Where,

L = The lead time to replenish an order is 1 hour

K = The number of kanban cards

D = The average number of demanded unit per a period which is 4

C= the container size which is 4

S = The safety stock represented in percentage of demand 0.50

Now,

We substitute the given values in the above formula and compute the number of kanbabn cards as follows:

Kanban cards =  4 * 1 (1 + 0.5)/4

= 6/4 =1.5

Therefore, the number of Kanban card sets are needed is 1.5

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