Material handlers use forklifts to move parts on pallets


Material handlers use forklifts to move parts on pallets around a plant. A pallet is used as the minimum produc­tion quantity - each pallet holds 40 parts.

Replenishment lead time for a part is 2 hours and its demand rate is 1200 units per 8 hour day.

a) Find the minimum number of kanbans needed for this part.

b) Suppose that a 10% safety factor is desired. How many kanbans are needed?

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