A manufacturing company is using a two container kanban system between a downstream and an upstream work center. Each container holds 25 parts. The using work center can handle 100 parts per day. The average elapsed time for the entire cycle is currently 0.4 days. The company is concerned about the efficiency and safety stock policy) of the operation. Required:
If the safety stock factor is changed to 0.1 and the number of parts per container is increased to 44, how many containers will be needed?

a. 1 container

Explanation:

Options are " 1 container, 2 containers, 3 containers, 4 containers"

Safety stock factor = (Number of container*Container size - Daily demand*Elapsed time) / (Daily demand*Elapsed time)

0.1 = (Number  of container*44 - 100*0.4) / (100*0.4)

0.1 = (Number  of container*44 - 40) / 40

0.1 * 40 = Number  of container*44 - 40

4 = Number  of container*44 - 40

4 + 40 = Number  of container*44

44 = Number  of container*44

Number  of container = 44 / 44

Number  of container = 1

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