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 = $30 Annual holding cost = $120 per subassemblyDaily production = 20 subassembliesAnnual usage = 2,500 (50 weeks * 5 days each* daily usage of 10 subassemblies)Lead time = 16 daysSafety stock = 4 days> production of subassemblies

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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 = $30

Annual holding cost = $120 per subassembly
Daily production = 20 subassemblies
Annual usage = 2,500 (50 weeks * 5 days each
* daily usage of 10 subassemblies)
Lead time = 16 days
Safety stock = 4 days> production of subassemblies

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