Determining kanbans systems


Question: Please read the problem below and answer the question. Please show/explain the work-steps as to how the answer to the problem was derived.

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Problem: Leblanc Electronics, Inc., in Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the owner, Larry Leblanc, to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data scanner connectors used in one work cell.

Q: HOW MANY KANBANS DO YOU NEED FOR THIS CONNECTOR?

Daily Demand    1,000 connectors
Lead time          2 days
Safety stock      1/2 day
Kanban size 500 connectors

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Accounting Basics: Determining kanbans systems
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