Question: Isles Ltd require a kanban system for a specific part number AB - 1 2 3 4 5 - AA which is going to be

Isles Ltd require a kanban system for a specific part number AB-12345-AA which is going to be supplied by Gamma Ltd in containers, each of quantity 3. The weekly demand by day for this part number (in units) over the past six weeks has been as indicated in Table 6.1 and it has been agreed that the delivery frequency will be twice daily and the kanban signal will be via a 9 am and Ipm daily email. Table 6.1: Demand for Part-Number AB-12345-AA by week for six weeks \begin{tabular}{|l|c|c|c|c|c|c|}\hline Day/Week &
1
&
2
&
3
&
4
&
5
&
6
\\\hline Monday & 54 & 61 & 56 & 73 & 68 & 67\\\hline Tuesday & 60 & 70 & 62 & 68 & 65 & 55\\\hline Wednesday & 59 & 59 & 64 & 62 & 56 & 72\\\hline Thursday & 73 & 62 & 66 & 61 & 59 & 68\\\hline Friday & 56 & 72 & 55 & 73 & 61 & 74\\\hline \begin{tabular}{l} Weekly \\ Average \end{tabular} & 60.5 & 64.8 & 60.7 & 67.7 & 61.9 & 67.4\\\hline \end{tabular} The standard deviation of daily demand is equal to 6.2 units. The company allows
20%
for safety stock and ideally it would like its buffer stock to accommodate a desired service level of
97.5%
.(1) Calculate the maximum inventory level for AB-12345-AA at Isles Ltd.(2) How many kanbans are needed?

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