Hartley Electronics, Inc., in Nashville, produces short runs of custom airwave s

Question

Hartley Electronics, Inc., in Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the owner, Janet Hartley, to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you need for this connector? Daily demand 1400 connectors Lead time Safety stock 1.00 day Kanban size 2 days 500 connectors Number of kanbans kanbans (round your response to the nearest whole number) Enter your answer in the answer box.

Explanation / Answer

According to the question:

Number of Kanban is a function of the above given data and can be found using the formula:

N = [DD * LT * (1 + %SS)] / Q

N = [1400 * 2 * (1 + 0.01)] / 500

N = 2828/500 = 5.65 = 6 (rounded to the nearest whole number)

Thus, Number of kanbans = 6 kanbans

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