Determining the Number of Kanbans Needed:

The procedure of setting a Kanban Control system needs determining the number of Kanban cards needed. In a two-card system, the number of sets of production and withdrawal cards is needed to be determined. Accurately removing the lead time needed to generate a container of parts is the key to determine the number of containers. This lead time is a function of the processing time for the container, any waiting time during the production process, and the time needed to transport the material to the user. Sufficient kanbans are needed to cover the expected demand during this lead time plus some additional amount for safety stock. The number of Kanban card sets is

k = (Expected demand during lead time + Safety stock) /Size of the container

= ( DL (1 + S ) )/C

where, k = Number of kanban card sets,

D = Average number of units demanded over some time period,

L = Lead time to replenish an order (expressed in the same units as demand),

S = Safety stock expressed as a percentage of demand during the lead time, and

C = Container size.