Kanban Loop Size Calculator

Formula

The formula to calculate the Kanban Loop Size (K) is:

\[ K = (D \times L) + S \]

Where:

Kanban Loop Size (K): The total inventory required to meet demand while accounting for lead time and safety stock.
Significance: Ensuring the correct Kanban loop size helps maintain a smooth production process without interruptions due to lack of materials or overproduction.

Let's say the daily demand (D) is 100 units, the lead time (L) is 5 days, and the safety stock (S) is 50 units. Using the formula:

\[ K = (100 \times 5) + 50 = 550 \]

So, the Kanban Loop Size (K) is 550 units.