Kanban Calculator

Element Fill-in Element Description

Order lead-time 4 Time to place and acknowledge order
Transit lead-time 3 Supplier delivery time These should all be in same units of
time, generally in days
Internal lead-time 0 Production or movement from stores
Container qty 200 Number of parts per each container Equivalent to Kanban size
Daily demand 123 Average of at least 3 months
Daily demand variation 10 1 standard deviations of demand These should all be in same units,
generally pieces
Reorder/lot size 600 Purchased or Make

Total Leadtime 7
Daily demand + Variation 143
(95% Service Level)
# Kanban Cards 5

Max Qty on Hand 1000

# Days on Hand 8.1

Board Area Indicator # Cards

Green 3
Yellow 1
Red 1

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The first step is to understand how theparts are packed. Kanban quantity is a multiple of the pack
quanitity;pack quantity has to be consistent.
The simplest Kanban is similar to a two-bin system, 2 card, one for each of the 2 containers, boxes,
etc.
The key is to understand how long it take to replenish each part. Pay attention for any additional
frieght charges for more frequent shipments.
You need to have enough Kanbans in the system to cover replenishment lead-time.

*Parts with quality defect history are bad choices for Kanbans

Using the Kanban Calculator, enter the information into the appropriate yellow boxes.
The output in number of cards and max inventory is shown below:
Number Kanban Cards 5
Kanban size 200 units
Max inventory 1000 units

*Number of cards should be recalculated when demand, lead time, or lot size changes. The
calculation is an estimate.