A bottling plant fills 1,200 bottles every two hours. The lead time is 60 minutes and a container accommodates 130 bottles. The safety stock is 20 percent of the expected demand. How many kanban cards are needed? (Round up your answer to the next whole number.)

6

Explanation:

Given that

Annual Demand = 10 bottles in 1 minute

Leading time = 60 minute

percentage of Safety stock = 0.2

Container size= 130 bottles

The computation of the number of kanban cards is given below:-

= Annual demand × Leading time (1 + percentage of safety stock) ÷ Container size

= 10 × 60 (1 + 0.2) ÷ 130

= 600 (1.2) ÷ 130

= 5.538

So, the round-up the next whole number is 6

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