Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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QUESTION 2 (LEAN OPERATIONS AND JUST-IN-TIME(JIT) - DETERMINING THE NUMBER OF KANBAN
CONTAINER)
Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5
and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day
when production of the assembly is underway. Lead time is 3 days; safety stock is 1/2 day's
production. What is the optimum kanban size, and number of kanbans?
Transcribed Image Text:QUESTION 2 (LEAN OPERATIONS AND JUST-IN-TIME(JIT) - DETERMINING THE NUMBER OF KANBAN CONTAINER) Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 1/2 day's production. What is the optimum kanban size, and number of kanbans?
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