Our research shows that the expected demand during lead time for a particular component is 1,200 per hour. you estimate the safety stock should be set at 5% of the demand during lead time. the tote trays used as containers can hold 2 units of stock

6300.

Explanation:

Here is the complete question: Our research shows that the expected demand during lead time for a particular component is 1,200 per hour. You estimate the safety stock should be set at 5% of the demand during lead time. The tote trays used as containers can hold 2 units of stock and lead time to replenish an order is 10 hours. What is the number of kanban card sets necessary to support the situation?

Given: Average demand of the product= 1200 per hour

          Safety factor is 5%

          Kanban cycle time= 10 hours

          Number of Kanban container can hold= 2 units

Now, calculating the number of kanban card per kanban container.

Formula; Number of unit per kanban container=

Where, D= Average demand of the product

            S= Safety factor

          KCT=  Kanban cycle time

             C=  Number of Kanban container can hold.

Number of unit per kanban container=

⇒ Number of unit per kanban container=

∴ The number of kanban card per kanban container is 6300.

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