You Have Been Called in as a Consultant to Set

question 45

Multiple Choice

You have been called in as a consultant to set up a kanban control system. The first thing you do is to determine the number of kanban card sets needed. Your 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 the lead time to replenish an order is 10 hours. Which of the following is the number of kanban card sets necessary to support this situation?

• A) 5,000
• B) 5,500
• C) 6,300
• D) 6,500
• E) 7,000

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Definitions:

Net Requirements

The actual amount of materials or products needed to meet demand, after accounting for current inventory levels and scheduled supply receipts.

Part C

In specific contexts, this can refer to a section or segment of a larger document, plan, or legislation, detailing specific aspects or requirements.

Safety Stock

Extra inventory kept on hand to mitigate the risk of stockouts due to uncertainties in supply or demand.

MRP

Stands for Material Requirements Planning, a system for calculating the materials and components needed to manufacture a product.