A downstream process that uses 150 parts/day (on average). The lead time to obtain new parts once the signal start from the Point of Use (POU), arrive to the upstream (or supplier) and the parts are delivered to the POU is 10 days. The Safety Stock in percentage is 15% (to compensate demand variation or delays). Every container is of 75 parts. Calculate the number of Kanban needed for the process: 20 27 25 23
Question
A downstream process that uses 150 parts/day (on average). The lead time to obtain new parts once the signal start from the Point of Use (POU), arrive to the upstream (or supplier) and the parts are delivered to the POU is 10 days. The Safety Stock in percentage is 15% (to compensate demand variation or delays). Every container is of 75 parts. Calculate the number of Kanban needed for the process: 20 27 25 23
Solution
To calculate the number of Kanban needed for the process, we need to follow these steps:
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Calculate the average demand during lead time: This is done by multiplying the average daily demand by the lead time. In this case, it would be 150 parts/day * 10 days = 1500 parts.
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Calculate the safety stock: This is done by multiplying the average demand during lead time by the safety stock percentage. In this case, it would be 1500 parts * 15% = 225 parts.
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Add the average demand during lead time and the safety stock to get the total demand during lead time including safety stock. In this case, it would be 1500 parts + 225 parts = 1725 parts.
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Divide the total demand during lead time including safety stock by the number of parts per container to get the number of Kanban. In this case, it would be 1725 parts / 75 parts/container = 23 Kanban.
So, the correct answer is 23.
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