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Answer :
Lead Time is 20 cakes.Since the daily demand is 10 cakes and the safety stock is 5 cakes, the lead time is 20 cakes.
Kanban is a system of just-in-time manufacturing that was developed to optimize the production process. This production system's main idea is to produce only what is needed when it is needed, which lowers the overall cost of production. The aim of Kanban is to maximize efficiency while minimizing waste.The lead time is the amount of time required for a system to complete a process.
The bakery's lead time, based on the given information, can be calculated as follows:
Lead Time = (Number of Kanban containers * Quantity of Cakes in each Kanban container) + Safety Stock Demand/Day= 10 cakes, Safety Stock = 5 cakes, Number of Kanban containers = 5 and Quantity of Cakes in each Kanban container = 3 cakes
Therefore,Lead Time = (5 * 3) + 5= 20 cakesSince the daily demand is 10 cakes and the safety stock is 5 cakes, the lead time is 20 cakes. This implies that the bakery can keep up with its daily demand, and it has an additional safety stock to manage any unexpected fluctuations in demand.
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