Question

A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication center produces approximately 10 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many kanban card sets are needed?

Short answer

The equation to determine Karban cards is given below:

$\frac{k}{c}=DL(1+S)$

where k = number of Karban cards

D = average demand

L = lead time

S = safety stock

C = container size

Step-by-step solution

Given data as per equation

D = 10 gauges

L= 2 hours

S= 0.2 (as a percent of 20)

C = 5

Put these values in the equation

K = DL (1+S)/C

K = 10 x 2 (1+ 0.2)/5

K = 21.2/5

K = 4.24

(Round up the answer to next whole number)

So, the answerwill be 5 which means 5 Karban sets are needed.