Make a kanban of finished good products

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Jerry is trying to decide how large to make a Kanban of finished good products for a high paying customer so he can fulfill the orders quickly. This customer places orders totaling an average 500 pieces per month (4-week period, 5 days per week). Jerry’s lead time on a batch of 100 pieces in 2 work days. Based on his past experience with the customer and the capacity of his system, Jerry believes he needs to maintain 25% safety stock.

A) How large should his Kanban be?

Reference no: EM131368709

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