Can someone please help me solve this equation?

A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed? The formula in the book is:

k = DL(1 + S)/C

k = Number of kanban card sets

D = Average number of units demanded over some time period

L = Lead time to replenish an order (expressed in the same units as demand)

S = Safety stock expressed as a percentage of demand during the lead time

C = Container size

Thank You

1 Answer

  • D = If the average number of units demanded is 2400 and the time period is 2 hours, then that’s the same as 1200 in an hour, 1200 in 60 minutes, 20 in one minute.

    L = 40

    S = 0.1

    C = 120

    k = 20 * 40 (1 + 0.1) / 120

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