Determine the size of the kanban for 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: $110 per subassembly

Daily production: 40 subassemblies

Annual usage: 2,500 (50 weeks x 5 days each x daily usage of 10 subassemblies)

Lead time: 10 days

Safety Stock: 4 days' production

1. Kanban container size = _______ units (round your answer to the nearest whole number)

2. Number of kanbans = ________ (round your answer to the nearest whole number)

Reference no: EM132180903

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