Consider the following information:
Demand rate (D) = 300 units per hour
Lead time (T) = 4 hours
Container capacity (C) = 40 units
Safety factor (x) = 10%
a. How many kanban production cards are needed?
b. How many hours' worth of demand will these cards represent?
c. Suppose the lead time is reduced to three hours.
Will this make any difference in the inventory levels? Show your work.