(a) Number of Kanbans required = Demand per hour * Lead time / Container size Nu

Question

(a) Number of Kanbans required = Demand per hour * Lead time / Container size

Number of Kanbans required for part A = 20 * 4 / 5 = 16

Number of Kanbans required for part B = 40 * 4 / 10 = 16

Number of Kanbans required for part C = 10 * 4 / 5 = 8

(b) Safety factor of lead time = -(1/4)*ln(1-0.99) = 1.15

Number of Kanbans required = Demand per hour * (Lead time + safety factor of lead time) / Container size

Number of Kanbans required for part A = 20 * (4+1.15) / 5 = 20.6 ~ 21

Number of Kanbans required for part B = 40 * (4+1.15) / 10 = 20.6 ~ 21

Number of Kanbans required for part C = 10 * (4+1.15) / 5 = 10.3 ~ 11

Explanation / Answer

A department manufactures three different products using a Kanban system. Data for the individual products are given in the following table. Setup time is negligible. (a) Find the minimum number of Kanbans required for each part type assuming replenishment lead time is always four hours. (b) Suppose that lead time is exponentially distributed with a mean of four hours. How many Kanbans are required for each part type to ensure that parts are available for at least 99% of the time that they are requested? Container size Unit processing time Product Demand/hour (hours) 0.02 0.01 0.01 20 40 10

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