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A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?

Short Answer

Expert verified

In this situation, Karban card sets are required.

Step by step solution

01

Equation through which Karban card set is calculated

K = DL(1+S)/C

Where K = number of karban cards needed

D =average demand

L =lead time

S =safety stock

C = container size

02

Calculate the Karban card set

D =2400

L =40

S =0.1 (as a percent of 10)

C =120

K= 2400 x 40(1+0.1)/120

K= 105,600/120

K= 880

So, 880 Karban card sets are required.

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