Decide the size of the kanbans for the mains haft assembly

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Q. Maggie Moylan Motorcycle Corporation uses kanbans to support its transition assembly line. Decide the size of the kanbans for the mains haft assembly and the number of kanbans needed. Set up costs = $20. Yearly holding costs of mains haft assembly = $250. Daily production = 300 main shafts. Yearly usage = 20,000 (=50 weeks X 5 days each X daily usage of 80 main shafts). Lead time = 3 days. Safety stock = 1/2 day's production of main shafts.

Reference no: EM1373845

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