Can someone please help me solve this equation?
I need assistance in solving the following equation related to our bottling plant operations. The plant fills 2,400 bottles every two hours. The lead time for replenishment is 40 minutes, and each container holds 120 bottles. Additionally, we maintain a safety stock of 10 percent of the expected demand. I am trying to determine how many kanban cards are needed using the following formula from our textbook:
k = DL(1 + S) / C
Where: - k = Number of kanban card sets - D = Average number of units demanded over a specified 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 for your help!
1 Answers
Jan 10, 2025
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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