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Pauline Found Manufacturing, Inc., is moving tokanbans to support its telephone switching-board assemblylines. Determine the size of the kanban for subassemblies and thenumber of kanbans needed.Setup cost = S30Annual holding cost = $120 per subassemblyDaily production = 20 subassembliesAnnual usage = 2,500 (50 weeks X 5 days eachX daily usage of 10 subassemblies)Lead time= 16 daysSafety stock = 4 days' production of subassemblies

Pauline Found Manufacturing, Inc., is moving tokanbans to support its telephone switching-board assemblylines. Determine the size of the kanban for subassemblies and thenumber of kanbans needed.Setup cost = S30Annual holding cost = $120 per subassemblyDaily production = 20 subassembliesAnnual usage = 2,500 (50 weeks X 5 days eachX daily usage of 10 subassemblies)Lead time= 16 daysSafety stock = 4 days' production of subassemblies

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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 = S30
Annual holding cost = $120 per subassembly
Daily production = 20 subassemblies
Annual usage = 2,500 (50 weeks X 5 days each
X daily usage of 10 subassemblies)
Lead time= 16 days
Safety stock = 4 days' production of subassemblies
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