Ferdows Electronics, Inc. (FEI), produces short runs of custom microwave radios

Question

Ferdows Electronics, Inc. (FEI), produces short runs of custom microwave radios for railroads and other industrial clients. You have been asked to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data for connectors used in one work cell. How many kanbans do you need for this connector? Daily demand 1,500 radios Production lead time 1 day Safety stock 1/2 day Kanban size 250 radios kanbans are required (enter your response as a whole number)

Explanation / Answer

Demand during lead time = 1 day = 1500 radios

safety stock = 1/2 day = 1500*1/2 = 750 radios

therefore maximum inventory level = demand during lead time + safetry stock

=1500+750 = 2250

Number of kanbans needed =maximum inventory level / kanban size

= 2250 / 250

= 9

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.