Explain the kanban equation

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A supplier of device gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported 5 at a time. A fabrication center produces approximately 10 gauges per hour. It takes approximately two hours for the housing to be replenished. Due to variations in processing times, management has decided to keep 20 percent of the needed inventory as safety stock. How many kanban card sets are needed?

Reference no: EM1377061

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