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 Annual holding cost Daily production Annual usage Lead time Safety stock $30 $120 per subassembly 25 subassemblies 4,000 (50 weeks x 5 days each x daily usage of 16 subassemblies) 12 days 4 days' production

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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
Annual holding cost
Daily production
Annual usage
Lead time
Safety stock
$30
$120 per subassembly
25 subassemblies
4,000 (50 weeks x 5 days each x daily usage of
16 subassemblies)
12 days
4 days' production
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 Annual holding cost Daily production Annual usage Lead time Safety stock $30 $120 per subassembly 25 subassemblies 4,000 (50 weeks x 5 days each x daily usage of 16 subassemblies) 12 days 4 days' production
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