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Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately four 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?

Short Answer

Expert verified

In this situation, 2 Karban card sets are needed.

Step by step solution

01

The equation to calculate Karban card set

K = DL (1+S)/C

Where, K = number of cards

D = average demand

L= lead time

S = safety stock

C = container size

02

Calculation of the Karban card set

D= 4

L= 1

S = 0.5 (percent of 50)

C = 4

K = 4*1(1+0.5)/4

K = 6/4

K = 1.5

(round up the answer to the next whole number)

So, the answer will be 2 i.e. 2 Karban card setsare required.

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