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A manufacturer of instrument gauge clusters (gauges) uses a Kanban system to control material flow. The gauges are transported in a container that holds four. The demand at a downstream fabrication center is approximately 12 gauges per hour. It takes approximately three hours for the gauges to be replenished by an upstream work center. Due to variations in fabrication times, management has decided to keep 2 percent of the needed inventory as safety stock. Given the data above, how many Kanban cards are required? Please round your answer to the nearest whole number.

A manufacturer of instrument gauge clusters (gauges) uses a Kanban system to control material flow. The gauges are transported in a container that holds four. The demand at a downstream fabrication center is approximately 12 gauges per hour. It takes approximately three hours for the gauges to be replenished by an upstream work center. Due to variations in fabrication times, management has decided to keep 2 percent of the needed inventory as safety stock. Given the data above, how many Kanban cards are required? Please round your answer to the nearest whole number.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A manufacturer of instrument gauge clusters (gauges) uses a Kanban system to control material flow. The gauges are transported in a container that holds four. The demand at a downstream fabrication center is approximately 12 gauges per hour. It takes approximately three hours for the gauges to be replenished by an upstream work center. Due to variations in fabrication times, management has decided to keep 2 percent of the needed inventory as safety stock. Given the data above, how many Kanban cards are required? Please round your answer to the nearest whole number.
Transcribed Image Text:A manufacturer of instrument gauge clusters (gauges) uses a Kanban system to control material flow. The gauges are transported in a container that holds four. The demand at a downstream fabrication center is approximately 12 gauges per hour. It takes approximately three hours for the gauges to be replenished by an upstream work center. Due to variations in fabrication times, management has decided to keep 2 percent of the needed inventory as safety stock. Given the data above, how many Kanban cards are required? Please round your answer to the nearest whole number.
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