Ferdows Electronics, Inc. (FEI), produces short runs of custom microwave radios for railroads and other industrial clients. You have been asked to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data for connectors used in one work cell. How many kanbans do you need for this connector? Daily demand 1,500 radios Production lead time 1 day Safety stock 1/2 day Kanban size 250 radios 9 kanbans are required (enter your response as a whole number).

9 kanban

Explanation:

The calculation of the number of kanban containers needed is given below:

= (Lead time demand + Safety stock) ÷ kanban size

where,

Lead time demand is

= 1,500 radios × 1 days

= 1,500 radios

Container size = 250 radios

Safety Stock is

= 1 ÷ 2 day × 1,500 radios

= 750 radios

So, the number of kanban containers needed is

= (1,500 radios + 750 radios) ÷ (250 radios)

= 9 kanban

We simply used the above formula to find out the required kanbans

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