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 demand1.400 connectors Lead time Safety stock 100 day Kanban size 3 days 500 connectors Number of kanbans kanbans (round your response to the nearest whole number).

Explanation / Answer

Daily demand = 1400

Lead time = 3 days

Safety stock = 1 day

Kanban size = 500

Number of Kanbans = Daily demand * (Lead time + Safety stock) / Kanban size

= 1400*(3+1)/500 = 11.2 ~ 11 kanbans

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