Consider the following information: Demand rate (D) = 1,000 units per hour Lead time (T) = 2
Question:
Demand rate (D) = 1,000 units per hour
Lead time (T) = 2 hours
Container capacity (C) = 250 units
Safety factor (x) = 15%
a. How many kanban production cards are needed?
b. How many hours' worth of demand will these cards represent?
c. Suppose the safety factor is eliminated. Will this make any difference in the inventory levels? Would this be a wise thing to do? Show your work.
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Related Book For 
Introduction to Operations and Supply Chain Management
ISBN: 978-0132747325
3rd edition
Authors: Cecil B. Bozarth, Robert B. Handfield
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