Question

Meritor is so pleased with the outcome from previous suggestions that the consultants are invited back for more work. The consultants now suggest a more complete robotic automation of the making of muffler assemblies and also a reduction in container size to eight per container. Meritor implements these suggestions and the result is that the muffler assembly fabrication cell now averages approximately 32 assemblies per hour, and the catalytic converter assembly cell can now respond to an order for a batch of catalytic converters in one hour. The safety stock remains at 12.5 percent. How many kanban cards are needed?

Short answer

In this situation, 5 Karban cards are required.

Step-by-step solution

Equation to calculate Karban cards

K = DL(1+S)/C

Where K =number of Kanban size

D =average demand

L =lead time

S =safety stock

C = container size

Calculate the Number of Kanban cards

D =32

L =1

S =0.125 (as a percent of 12.5)

C =8

K = 32 x 1(1+0.125)/8

K = 36/8

K = 4.5

(round up the answer to the next whole number)

So,5 Karban cards will be required.