Kanban container size = Number of kanbans needed=
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Kanban container size =
Number of kanbans needed=

Transcribed Image Text:Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines.
Determine the size of the kanban for subassemblies and the number of kanbans needed.
Setup cost
$30
Annual holding cost
$125 per subassembly
Daily production
30 subassemblies
Annual usage
2,500 (50 weeks × 5 days each x daily usage of
10 subassemblies)
Lead time
16 days
Safety stock
2 days' production
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