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Answer :
The bakery's safety stock calculation with 5 kanban containers and a daily demand of 20 cakes results in 5 cakes being the necessary safety stock. b. 5 cakes.
The student's question is related to a bakery's inventory system, specifically the calculation of safety stock using a kanban system. The bakery has 5 kanban containers holding 5 cakes each. The daily demand is for 20 cakes with a lead time of 1 day for replenishing those cakes. To determine the safety stock, which is the extra inventory kept to avoid stockouts in case of variation in demand or supply, we can use the formula:
Safety Stock = (Total Number of Containers x Container Capacity) - (Daily Demand x Lead Time)
By plugging in the numbers:
Safety Stock = (5 containers x 5 cakes/container) - (20 cakes/day x 1 day)= 5 cakes
So, the safety stock that the bakery should hold is 5 cakes. option b.
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