Question & Answer: PSH Industries uses a Kanab system to manage production of the J-l5 subassembly, hey have an hourly…

PSH Industries uses a Kanab system to manage production of the J-l5 subassembly, hey have an hourly demand for 250 units and use containers that can hold 50 units each. It takes 90 minutes to fill and move a container of parts to the right place on the MS line that is currently rated at a 20% safety factor. How many production cards are needed? 540 100 9 1.5

Expert Answer

hourly Demand=250

Lead time=90 mins=90/60=1.5 hrs

Kanban size=50

Number of Kanbans(production cards)=?

Safety factor=20%

Number of Kanban = (average demand during lead time + safety stock) / container quantity

=(250*1.5+250*1.5*20%)/50=(450/50)=9

option (c) is the answer

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