Transmissions are delivered to the fabrication line five at a time. It takes two

Question

Transmissions are delivered to the fabrication line five at a time. It takes two hours for transmissions to be delivered. Approximately three 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?

[5*2(1+50%)]/3 = 5 is not the right answer?

Transmissions are delivered to the fabrication line five at a time. It takes two hours for transmissions to be delivered. Approximately three 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?

[5*2(1+50%)]/3 = 5 is not the right answer?

Explanation / Answer

Given Demand D = 5

Safety stock S = 50% =0.5

Lead time = 2 hours

Container Size C = 3

How many kanban card sets are needed?

k = DL (1+S)/C =

= (5*2 *(1+0.5))/3 = 5

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