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What is the optimal number of kanbans

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Reference no: EM132730033

The daily demand for a product is 8 units. Since the plant operates 300 days per year, this leads to an annual demand of 24,00 units. The setup cost is $40 per setup and the carrying cost is $3 per unit per year. The daily production of this product is 12 units. Lead time is four days, and safety stock is 5 day's production. What is the optimal number of kanbans?

Reference no: EM132730033

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