A supplier of instrument gauge clusters uses a Kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication centre produces approximately 10 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many Kanban card sets are needed

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A supplier of instrument gauge clusters uses a Kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication centre produces approximately 10 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many Kanban card sets are needed

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