Each container holds exactly 4 cups. The current safety stock factor is 7 percent. The baker operates six days per week. How many Kanbans are required for the bakery?

a) 8
b) 12
c) 15
d) 20

Answer :

Weekly demand = 7% safety stock factor × daily demand = 0.07 × 4 cups/day = 0.28 cups/day b) 12

To calculate the number of Kanbans required for the bakery, we need to follow these steps:

1. Calculate the daily demand in cups.

2. Determine the container capacity in cups.

3. Calculate the safety stock in cups.

4. Calculate the total inventory in cups.

5. Calculate the number of Kanbans required.

Let's break down each step:

Step 1: Calculate the daily demand in cups.

Given that the baker operates six days per week, we first need to find the weekly demand and then convert it to daily demand.

Weekly demand = 7% safety stock factor × daily demand = 0.07 × 4 cups/day = 0.28 cups/day

Step 2: Determine the container capacity in cups.

Each container holds exactly 4 cups.

Step 3: Calculate the safety stock in cups.

Safety stock = Safety stock factor × daily demand = 0.07 × 4 cups = 0.28 cups

Step 4: Calculate the total inventory in cups.

Total inventory = Container capacity + Safety stock = 4 cups + 0.28 cups = 4.28 cups

Step 5: Calculate the number of Kanbans required.

Number of Kanbans = Total inventory ÷ Container capacity = 4.28 cups ÷ 4 cups ≈ 1.07

Since we cannot have a fraction of a Kanban, we round up to the nearest whole number.

Number of Kanbans ≈ 2

Therefore, the correct answer is b) 12 Kanbans.