You have the following information: Demand rate = 500 units per hour Lead time = 5 hours

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You have the following information:

Demand rate = 500 units per hour
Lead time = 5 hours
Container capacity = 60 units
Safety stock = 15%

1. Determine the number of Kanban cards required.

2. Convert these Kanban cards into the number of hours of demand they represent.

3. If the lead time is reduced from 5 to 3 hours, what impact, if any, will it have on inventory levels?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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