Course Solutions Uncategorized (Answered) : 2. If a business wants to reduce inventory by changing to a kanban system. How many containers are needed if daily demand is 1000

(Answered) : 2. If a business wants to reduce inventory by changing to a kanban system. How many containers are needed if daily demand is 1000

June 27, 2024| admin| 0 Comment| 7:39 pm

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2. If a business wants to reduce inventory by changing to a kanban system. How many containers are needed if daily demand is 1000 units, lead time is 2 days, safety stock is ¼ day, and container size is 475 units?

Expert Answer

The formula for the kaban system is N = {DT(1 + X)/C}

Given Data Demand = 1000 Units

Lead Time = 2 Days

Safety Stock = 1/4 day

Container Size = 475 Units

Where;

N = Number of Containers

D = Planned Usage Rate

T = Average Waiting Time

X = Buffer or Safety Stock

C = Capacity of Standard Container

N = {( 1000 Units )

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(Answered) : 2. If a business wants to reduce inventory by changing to a kanban system. How many containers are needed if daily demand is 1000

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