Asked by Nguyen Hien Minh Quan on Jul 08, 2024

verifed

Verified

Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of 12\frac { 1 } { 2 }21 a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?

A) not enough information
B) 1
C) 5
D) 10
E) 25

Safety Stock

Additional inventory kept on hand to guard against stockouts caused by uncertainties in demand and lead-time.

Kanbans

A scheduling system for lean manufacturing and just-in-time (JIT) production that signals the need to move materials within a production facility.

  • Recognize the crucial elements involved in determining the quantity of Kanbans required for manufacturing and managing inventory.
verifed

Verified Answer

CP
Cassie PoulainJul 10, 2024
Final Answer :
E
Explanation :
The correct number of kanbans can be calculated using the formula: Number of Kanbans=Demand during lead time+Safety stockSize of one container \text{Number of Kanbans} = \frac{\text{Demand during lead time} + \text{Safety stock}}{\text{Size of one container}} Number of Kanbans=Size of one containerDemand during lead time+Safety stock . Here, demand during lead time is 2 days×10 cakes/day=20 cakes2 \text{ days} \times 10 \text{ cakes/day} = 20 \text{ cakes}2 days×10 cakes/day=20 cakes , and safety stock is 0.5 day×10 cakes/day=5 cakes0.5 \text{ day} \times 10 \text{ cakes/day} = 5 \text{ cakes}0.5 day×10 cakes/day=5 cakes . Thus, 20 cakes+5 cakes1 cake/container=25 \frac{20 \text{ cakes} + 5 \text{ cakes}}{1 \text{ cake/container}} = 25 1 cake/container20 cakes+5 cakes=25 kanbans.