Assume we want to implement a Kanban system for our production facility, but we are not sure how many Kanban cards we should actually use. Let $N$ be the number of Kanbans, where $N$ is found with the following formula:

$N=\frac{D**T**(1+x)}{C}$

where $D$ is the demand for the part $($e$.$g$.,$ units per day$),T$ is the flow time to produce a part, $C$ is the capacity of the containers used to hold and transport the parts form one station to another, and $x$ is the safety factor, defined as a percent, used to determine the amount of extra inventory to hold.

Giovanni is an operations manager for a company that produces various plumbing fixtures. There is an hourly demand for $500$ units of a particular pipe. It takes $2$ hours to produce the part, and each container can hold $50$ pipes. Assume they have a safety stock of $15\%.$ How many Kanbans should Giovanni use?

Answer:

Assume that Giovanni has a maximum of $30$ kanban cards. Assume that the flow time, safety stock, and container size remain the same. What is the maximum demand that Giovanni can satisfy?

$2$