Material handlers use forklifts to move parts on pallets around a plant. A pallet is used as the minimum production quantity - each pallet holds 40 parts. Replenishment lead time for a part is 2 hours and its demand rate is 1200 units per 8 hour day.
a) Find the minimum number of kanbans needed for this part.
b) Suppose that a 10% safety factor is desired. How many kanbans are needed?