Numerical problem (Kanban system)
A JIT system uses Kanban cards to authorize movement finished product from assembly area to the quality control division. The production system produces average 200 parts per hour.
The manager assigned an inefficiency factor of 5% to the production system. The standard containers are designed to hold four dozen parts each. The cycle time for parts containers is about two hours (include move, wait, empty, return, fill etc.).
i) How many containers are needed?
ii) What is the hour's worth of inventory?
Number of Kanban,
N = number of Kanban cards D = demand per unit of time T = lead time
C = container capacity
x = safety factor