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Blue Wave Enterprises is a Canadian manufacturer of party products. A new line of birthday candles is selling successfully but not profitable. The production process is fairly but takes 4 days and candles have to retail at a very low price to be competitive. The owner of the company feels that the greatest cost is in keeping 50,000 packages of candles in inventory. She wants to implement a Kanban system to reduce storage costs. The operations manager provides the owner with the following information:
Daily demand 3,000 packages of candles
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Safety stock 1 day
Container size 250 packages
How many Kanbans will be required and what does this mean?
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