The Edward James Toy Company uses a Kanban system to make plastic wheels that are a component of several toys. The waiting time for a container of the wheels during production is 0.25 day; average processing time is 0.15 day per container. Each container holds 200 wheels. The company uses 2000 wheels a day in the production of its products. Using a policy variable of 5%, calculate the number of Kanban containers needed for the wheels.

4.2 kanban containers required

Step-by-step explanation:

Given the following information :

Waiting time = 0.25 days

Average peocessing time = 0.15 days / container

Daily usage (Demand rate) = 2000 per day

Container capacity = 200 wheels

Policy variable ( Alpha) = 5% = 0.05

Therefore, number of kanban containers needed for the wheels can be calculated using:

(Number of containers(x) * container size) = (Demand rate (waiting time + processing time)*(1 + alpha))

x * 200 = 2000(0.25 + 0.15)*(1 + 0.05)

200x = 2000(0.40)*(1.05)

200x = 840

x = 840 / 200

x = 4.2

4.2 kanban containers required