Question

JL.61 A producer of refrigerator compressors wants to implement a just-in-time production line to support demand from a neighboring appliance manufacturer. Demand from the appliance manufacturer is for 285 compressors a day. The production lead time is 4 days and the producer wants to have a 18% safety stock factor. This producer has also cut setup costs such that the optimal production quantity is 93 units. How many kanbans does this producer of compressors require? (Display your answer to the most appropriate whole number.)

Answer 1

Lead time demand = d.L = 285 per day * 4 days = 1,140 units

No. of kanbans = Lead time demand * (1 + safety factor) / Container size

= 1140*(1 + 0.18) / 93

=14.46 i.e. 14 kanbans