Stock level/Kanban Calculator

This is an explanation of a stock management calculator that helps you determine the optimal inventory levels for a component in a warehouse. The calculator takes into account the minimum stock level, safety stock level, lead time, average daily usage, batch size, and delivery lead time. The calculator outputs the reorder point, kanban order quantity, and kanban level.

The reorder point is the point at which you should place a new order to ensure that you never run out of stock. It is calculated as the lead time multiplied by the average daily usage plus the safety stock level.

The kanban order quantity is the quantity of a component that should be ordered each time a new order is placed in a kanban system. It is equal to the batch size.

The kanban level is the number of kanban cards or containers that are needed to signal when a new order should be placed. It is calculated as the difference between the reorder point and the minimum stock level divided by the kanban order quantity.

Inputs:

  1. Minimum Stock Level: This is the minimum amount of stock that should be maintained for a component before reordering.
  2. Safety Stock Level: This is the additional amount of stock that is kept as a safety buffer to mitigate the risk of stockouts.
  3. Lead Time: This is the time it takes for a new order to arrive after it has been placed.
  4. Average Daily Usage: This is the average amount of a component that is used daily.
  5. Batch Size: This is the quantity of a component that is ordered each time a new order is placed.
  6. Delivery Lead Time: This is the time it takes for the ordered component to be delivered after it has been shipped.
 
 
 
 

Result: